Ok check this out, i have a plan to retire by the age of 30:
I'm 21 yrs old and about to graduate a ADN program
i will spend 1 year gaining experience in the ICU, then i will spend the next 8 years as a per-diem or traveling nurse, working no less then 60 hrs a week, 11 months a year.
so heres the math:
40hrs X $43hr = $6880 month
20hrs X $65 hr = $5200 month
total (net income) $8100 month
$2500 month living expenses so $5600 month to invest
Starting with $5,000 and depositing $5,600 monthly over 8 years (at a rate of return 12%, compounded monthly and taxed at your marginal rate of 28%), you will save $769,593.Initial balance:$5,000Total deposits:$537,600Total interest earned:$315,268Total taxes paid:$88,275Total Saved: $769,593
Now i understand that 769K will be different due to inflation 8 yrs from now, so we will say 669k so at 10% a year $66,000 a year!
Now for 8yrs i will work my ass off and be traveling and have little social life, but at age 30 i will never have to work again, and i will probably never want to in nursing cause i will be burnt out, but i think it would be worth it, what do you think?
You are assuming that your mutual funds will beat the average return of the stock market.
While some of what you are saying is true, you are glossing over the amount of time and research that is required to get the type of returns from individual stocks for the amount of return that you are touting. And, like Tweety's post I referred to, there are quarters that return a double digit with much less work. I repeat, it is irresponsible to let 401ks be the only method of plannig for the future, but dismissing them entirely is also a very poor choice.
Specializes in Accepted...Master's Entry Program, 2008!.
While some of what you are saying is true, you are glossing over the amount of time and research that is required to get the type of returns from individual stocks for the amount of return that you are touting. And, like Tweety's post I referred to, there are quarters that return a double digit with much less work. I repeat, it is irresponsible to let 401ks be the only method of plannig for the future, but dismissing them entirely is also a very poor choice.
Agreed! I will never be one of those people that needs a stock ticker on my Palm Treo so I can watch it every second of the day.
I also like the free money that companies will match.
Specializes in Accepted...Master's Entry Program, 2008!.
Not necessarily so. Things come up. People get sick, cars break down, family members need a hand up.....that's just what I can come up with in a couple of seconds. I applaude you heartily for being able to pay off your student loans within 3 years, that's truely totally awesome but not everyone's situation is the same. We're all different.
I agree with this wholeheartedly. The OP might get lucky and never have any of these things happen, but they cannot be planned for.
People do get sick, cars get stolen, you go through divorce....and on and on and on.
I do not need to read though this entire tread to know it is a crab bucket. Your original post invites that. It will be interesting to see how vulnerable you are to the crab effect.
Never invite financial advice from nurses and never ask for nursing advice from financial professionals.
While some of what you are saying is true, you are glossing over the amount of time and research that is required to get the type of returns from individual stocks for the amount of return that you are touting. And, like Tweety's post I referred to, there are quarters that return a double digit with much less work. I repeat, it is irresponsible to let 401ks be the only method of plannig for the future, but dismissing them entirely is also a very poor choice.
It depends on your employer. Many employers offer totally crappy funds in which case you are better off opening your own Roth IRA.
Just because an employer matches contributions doesn't mean you should take advantage of it if your choices are crappy. Most employees don't even know what a mutual fund is, so they don't complain.
I think that most of the posters are very supportive of the fact that the OP has plans and is looking to the future. What most are pointing out though, from the perspective of years is that sometimes plans take a 180 turn and that is not always a negative.
Nothing wrong with having a dream - didn't we all at that age? Although if I remember back that far, mine at age 20 had something to do with a commune in Oregon......
My favorite quote on the subject: "If you want to hear God laugh, tell him your plans."!
I graduated from nursing school in 1996 with $40,000 of debt. I paid off all my debt in 3 years including interest.
If you think it's impossible for a new grad to save $1,000 a month, then you spend too much. Period.
I can't save $1000.00 per month, so you're probably right I spend too much. Mainly in my mortgage and my high hurricane/flood and taxes which cost me $500 month. I live well, and I'll retire well, but can't save $1000 a month, and if I made a new grad salary I couldn't do it. But when I retire I'll be sitting on a $250,000 asset in my home.
I can't save $1000.00 per month, so you're probably right I spend too much. Mainly in my mortgage and my high hurricane/flood and taxes which cost me $500 month. I live well, and I'll retire well, but can't save $1000 a month, and if I made a new grad salary I couldn't do it. But when I retire I'll be sitting on a $250,000 asset in my home.
That's good, but it doesn't matter how much your home is worth if you don't plan to sell it.
Specializes in Adult and Pediatric Vascular Access, Paramedic.
To the OP:
If this type of plan would actually work, do you honestly think all us other folks would still be working into their 50's and 60's??
A few months or a year from now, whenever, you will get to your first nursing job, and then the reality of nursing will strike you. Nursing is not a bad job, but it can be very hectic and stressfull, I know you are young, but so am I and I cannot do more than about 45 hours a week, and even then my patience runs thin with patients.
Good luck... Like just about all the other people I am going to tell you that you will be working far beyond 30, unless you gain a large inheritence or win the lottery. If either of those come your way, could you share it with the rest of us poor folk who are still forced to work at 30. Thanks for a good laugh or two.
MNmom3boys
169 Posts
While some of what you are saying is true, you are glossing over the amount of time and research that is required to get the type of returns from individual stocks for the amount of return that you are touting. And, like Tweety's post I referred to, there are quarters that return a double digit with much less work. I repeat, it is irresponsible to let 401ks be the only method of plannig for the future, but dismissing them entirely is also a very poor choice.