Retire by 30, thanks nursing!

[ThePrestige]

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?

[agent66]

So I guess you did most of your saving/investing as a single person.

I think it's a lot easier to do if one is single and totally in control of all the money.

Even without kids, adding a spouse changes things, and I would imagine for those with kids it's a lot more difficult.

By the way minusing a spouse makes it even more difficult!!!

[mikethern]

Amen to that! If your employer matches and you don't go for the full match, you are just throwing money away. All I have to do is invest 2% of my salary and my employer matches with 9%.

You have to do the math.

Plan A: You invest $100 on your own for 30 years at 11% interest. You will end up with $2,671.

Plan B: You invest $100 and you employer is nice enough to match it, instantly making it $200. You invest it in your 401K for 30 years at only 7% interest. You will end up with only $1,623.

The point is that your 401K is only as good as the future performance of the mutual funds offered to you. My employer offers crappy mutual funds, so I invest on my own.

If you tell me the specific names of your mutual funds, I can analyze them for you.

[Tweety, BSN, RN]

Oh geez. The reason Americans have work in their sixties is that Americans are notorious for not saving enough. Also, most Americans know nothing about stock investing.

I am 38 years old, I work only 12 hours a week, and I will be a millionaire about 12 years from now.

I never got an inheritance, I never won the lottery, and I had $40,000 of debt 11 years ago.

The only people who say that it is impossible for a nurse to become a millionaire are nurses who will never be a millionaire.

Definatley agree that Americans are the worst savers. Other weathly countries like Austrailia, Canada and especially Japan do a better job. Our live for today culture is going to bite most of us in the butt later on. Even people in Chile have a better savings plan for retirement than we do.

I certainly don't think it's impossible for a nurse, or any middle income person to become a millionaire in their lifestime.

But I do understand that those with families who live in areas outside the NE and East Coast with lower salaries, might need a little time to get there and I certainly don't judge them harshly for having to work a full time job until their 60s and not being able to go part time or retire in their 30's.

I know why I am going to half to work until my 60s. I accept it. I'm not willing to work 60 hours a week to get there faster, 65 is fine with me. In fact, I'm starting grad school in Jan. to prepare for the 2nd half of my life to bring me into my 60s and beyond.

[MarySunshine]

Ditto what mike just said. Also, if you're taking the company benefits in order to get the 401K matching program you may be accepting a considerably smaller salary. When I dropped my benefits my hourly pay went from $20/hr to $33/hr. I invested my own retirement money. I bought my own high deductible health insurance for $60/month (something I HIGHLY suggest to the OP -- it's very affordable and it covers your butt!). I purchased my own life insurance and disability insurance plan. I worked a lot of overtime. I came out way ahead.

I am going to be one of the ones who commends the OP. You may have to change a few things. You may have to add a few years to the plan. If I were you I would have to take some vacation time, but I will admit that I am not you -- it's your decision and you would NOT be the first person to work that hard for that long. As someone else pointed out, many resident physicians do it.

A suggestion for you -- perhaps you could look into purchasing a home/condo in an affordable location that you like and rent it out while you're traveling. Also, many people live in a home they own WHILE traveling -- it's allowed (with some stipulations). I personally have a house and a condo and I rent the condo out. Both have 15 year mortgages and they will be paid off entirely by the time I am 37 (I'm 24 now). And I am not nearly as ambition as you are!

If I were you I'd plan a couple awesome trips during that 8 years. But if you can own a house and have half the money saved up that you plan to then you will have done exceedingly well and you may have a fantastic, full life. Just don't let your heart get bitter towards your patients -- that wouldn't be worth it.

I say "good luck!"

[Tweety, BSN, RN]

So I guess you did most of your saving/investing as a single person.

I think it's a lot easier to do if one is single and totally in control of all the money.

Even without kids, adding a spouse changes things, and I would imagine for those with kids it's a lot more difficult.

At least you get a bigger tax write off than us without kids.

[Tweety, BSN, RN]

Amen to that! If your employer matches and you don't go for the full match, you are just throwing money away. All I have to do is invest 2% of my salary and my employer matches with 9%.

Wow. It's the opposite here for me. :angryfire

[mariesmist]

A new grad CAN save over 1000/month. I save about 1500 a month total. I live and work in NYC. I live below my means. I max out my 403b (no match) and IRA (targeted retirement fund and mutual fund). I have a chunk in the stock market, this year with a 19% return so far (thanks APPLE!!). I manage to squeeze in at least two trips a year. The only thing is that I still rent but that'll probably change next year. If I was motivated only by money, I'd live with my parents but whatever, I'm 27. I work 1-2 overtime shifts a months and I still have somewhat of a social life. Kids will change the plan, but I'm undecided about them and off in the horizon somewhere. Thinking about changing to a hospital that matches, but I happen to like my employer now. It isn't perfect, plans change, high risk is acceptable, and nurses can be financially savvy once they get over the initial feeling of being overwhelmed by numbers.

I won't say it can be done until I'm comfortably retired, and it won't be by 30, but I believe I'm on my way.

[mikethern]

A new grad CAN save over 1000/month. I save about 1500 a month total. I live and work in NYC. I live below my means.

You should be proud of yourself. Keep in mind that right NOW is the most important time in your life to earn as much money as possible. Build a big snowball. Then you can sit back like me and let the snowball roll down the snowy hill and keep getting bigger.

Case in point:

If you have $30,000 at age 30, and then stop adding money to it, and get a 11% annual return on your savings, you will have have $1.4 million by the time you are 65.

In comparison, a 50-year-old with $30,000 who stops adding money to it, and gets the same annual return will have only $155,000 at age 65.

Save as much money as possible at the earliest age possible so your money can work for you over decades.

[SharonH, RN]

If the OP or anyone else is interested in seeing how other nurses are managing and/or reaching their financial goals, here is a neat little site I like to visit:

http://www.networthiq.com/occupation/HealthcareRN

That's the link for nursing but it has categories for all professions.

[crobrets]

Hey, can't a girl dream? I say if you can swing it, more power to ya! :

[Tweety, BSN, RN]

A new grad CAN save over 1000/month. I save about 1500 a month total. I live and work in NYC. I live below my means. I max out my 403b (no match) and IRA (targeted retirement fund and mutual fund). I have a chunk in the stock market, this year with a 19% return so far (thanks APPLE!!). I manage to squeeze in at least two trips a year. The only thing is that I still rent but that'll probably change next year. If I was motivated only by money, I'd live with my parents but whatever, I'm 27. I work 1-2 overtime shifts a months and I still have somewhat of a social life. Kids will change the plan, but I'm undecided about them and off in the horizon somewhere. Thinking about changing to a hospital that matches, but I happen to like my employer now. It isn't perfect, plans change, high risk is acceptable, and nurses can be financially savvy once they get over the initial feeling of being overwhelmed by numbers.

I won't say it can be done until I'm comfortably retired, and it won't be by 30, but I believe I'm on my way.

What a great plan! Kudos to you!!! You are definately on your way.

The salaries around here are a bit (actually probably a lot lower, in fact your $1500 a month is probably the difference between a new grad salary in Florida and NYC), but nonetheless the big key is "living below your means" and save. Save any amount. Those who can't save $1000 or more a month should be encouraged to start somewhere, anywhere....a few dollars a week if that's all, but just make a start. I'm dismayed at my coworkers who put nothing into their 401's when our facility is willing to give us money in it.

Mike, your new "calling" might be to be a FA to nurses. Thanks for your friendly (nonjudgemental for the most part) advice.

[Tweety, BSN, RN]

If the OP or anyone else is interested in seeing how other nurses are managing and/or reaching their financial goals, here is a neat little site I like to visit:

http://www.networthiq.com/occupation/HealthcareRN

That's the link for nursing but it has categories for all professions.

Thanks for the link Sharon. It's encouraging.

Sharon, weren't you the one who recommended the book "The Millionaire Next Door"? After that I got the abridged version on cassette to listen to while at the gym (I was in school at the time and didn't want to read the book) and found it interesting. Basically what they found is that average Joe Blows that got rich, did as some of the other big savers in this thread have adviced "live below your means". They drove modest cars, lived in modest homes, kids went to public schools and public universities, all the will with a million dollars in the bank.