I am a 23 year old BSN student set to graduate in Dec. As soon as I land a job, one of my biggest financial obligations will be to fully fund my 401k and start using a Roth because I have been taught that if I begin early, the money that I invest can grow exponentially more than it would if I were to wait until I was 30 to start saving..
I want to know what you all do for your 401k and retirement?
I just have a few questions regarding your 401K/Retirement plans, and I would greatly appreciate all responses.
1.)How much does your employer match?
2.) How old are you? OR How old were you when you began saving?
3.) Is your 401k your only source of retirement savings, or are you investing in other options?
4.) What percentage of your pay do you contribute?
5.)What age would you like to retire?
Also any financial advice you have for a childless, new RN with very minimal financial obligations would be greatly appreciated (Hindsight is 20/20, right?)
Specializes in CCU, SICU, CVSICU, Precepting & Teaching.
You're assuming that the parents are financially stable and thus have no worries about foreclosure and suddenly becoming homeless. You're assuming that there will be no car accidents or violent attacks against the person (trust me, there are plenty of people in my city who can tell you all about the financial costs of that). You are assuming that OT is available- many facilities are denying overtime and forcing staff to work short. Seriously, 2 weeks OT to solve money problems? What world are you living in? Yes, fine, statistically unlikely, but who wants to be that unlucky person and suddenly in a financial world of hurt?
They're probably also assuming that if the parent suddenly becomes homeless or otherwise needs financial help that it won't be up to them to help the parent.
The living situation is pretty steady. We will be moving to the city in about 6 months so that i can land a job before i graduate and so mom can be closer to her job. We'll split the rent, bills, and other living expenses 50/50 which I project to only cost me ~$650-700 a month. My car is paid for and insurance is minimal because its a beater car. Ill have a few thousand left over every month after i take care of living expenses. Just wanna be smart with it.
I would also look into buying rental property, especially now. I doubt you will ever see interest rates this low in your lifetime.
Passive income is a good thing
That would be a good choice. The federal reserve just raised the rates today to 0.25% which will effect the mortgage interest as well. There might be an end to the low interest environment, but who knows.
Good for you for planning. It is true that the earlier you start saving, the more your money grows as interest accrues.
I started saving when I was 25. However, a large portion of that money paid for school when I was 31.
I have a mortgage that I make extra payments on and I am currently saving 38 percent of my pay every month to make up for the large sum of money that I withdrew to buy my house.
I have no loans and no credit card debt. Living below your means is key. My employer provides a pension that I contribute to and we have an expense account that can be used for RRSPS or tax free savings accounts. That's an extra 4000 each year.
I would like to retire in 17 years, so I will need to continue to be diligent with saving.
Ruby Vee, BSN
17 Articles; 14,051 Posts
They're probably also assuming that if the parent suddenly becomes homeless or otherwise needs financial help that it won't be up to them to help the parent.