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?

[Tweety, BSN, RN]

Subtract about $2600 from your total figure, because that about how much taxes a month you're going to pay.

I realize there's a lot of reality on this thread, but let me just say how commendable it is for you to have a goal and to have a plan. Even if it doesn't pan out that's awesome for someone your age.

I only wish I had a plan when I was your age, and I wouldn't be scrambling and worrying about retirement now at the age of 48.

Fully 1/3 of baby boomers, the first of whom are now in their 60s have nothing saved for retirement. Nada. Another 1/3 of us have inadequate savings. Only 1/3 will have a comfortable retirement. That's 2/3 of us who are unprepared, and 2/3 of 75 million is a lot.

So kudos to you. Keep positive and dream big and work hard!!

I will add it's a very unwise (and typically youth oriented decision) not to take out benefits. Get some good health insurance and a life insurance policy.

[Diary/Dairy, RN]

I should be good enough with 1 yrs experience, and $43 hr is totally do-able, i wont take any benefits, 401k, just straight cash, i wouldn't retire completely but i could work maybe 2 days a week and pay the bills with ease, and have lots of time to be a stay at home dad, do some volunteering, spend some time with the family, my concern is that i will probably burn out, only one way to find out..

Most travel companies will not let you work for them with only one year's experience - they want you to have at least 2 years...... Also, a lot of hospitals will not consider contracting with someone who only has one year's experience. I have been working for 5 years and still only consider myself to be just getting past the novice stage.

Just be careful -

It's great to have a plan - just be aware it will probably change and the people posting here are just trying to be real without being unkind.

[SunbabiLPN]

It's wonderful to have a plan and I commend you for it. Just remember to always expect the unexpected. Life is full of suprises when we least expect it!!!

[RNperdiem, RN]

Don't forget a rainy day fund. Car trouble, termites, major medical payments(insurance doesn't pay what it used to), always put aside something for emergency money.

[HM2VikingRN, RN]

Right now I am working on getting my house paid off faster - and it's still going to take me until I am in my mid-40's..... It's nice to think about retiring that early, but not very practical.

I don't think complete retirement is feasible or healthy in your 30's. I am not sure that I was completely clear that I don't think it is possible to achieve retirement. Reduced work hours yes but not retirement.

I agree with Tweety about taking benefits. Disability and long term care insurance are extremely important to have.

[allthingsbright]

Actually my husband, a banker, said more and more people are doing this on a lot less money than I thought was possible.

Its a new trend, I guess!

Good luck-sounds ambitious!

[kukukajoo, LPN]

Not opting for health insurance will only cost you money in the long run. Disasters happen and there are plenty of RNs and others who can tell you medical issues have cost them dearly so please keep your insurance.

Your plan is very ambitious and I hope you are successful. I wish I could be so structured and stick to a plan like that! unfortunatley life things keep popping up and costing me money that I don't have.

[vashtee, RN]

Nice goal, but it isn't realistic. I have friends whose mortgages are $2600/month.

[RainDreamer, BSN, RN]

I should be good enough with 1 yrs experience, and $43 hr is totally do-able, i wont take any benefits, 401k, just straight cash, i wouldn't retire completely but i could work maybe 2 days a week and pay the bills with ease, and have lots of time to be a stay at home dad, do some volunteering, spend some time with the family, my concern is that i will probably burn out, only one way to find out..

Ok, retiring and working 2 days/week are two totally different things. Working part time is much more feasible!

[oldiebutgoodie, RN]

I would like to commend the OP for thinking about her financial future at age 21. When I was your age, I was drinking a lot of beer and fancy drinks (anybody remember tequila sunrises? Harvey Wallbangers?) and definitely not thinking about the future!

Although there may be some bugs in your initial plan, I do think it's great that you have an understanding of investing, and that you plan on saving! Now if only Britney would do the same...

Also, getting 10% on investments may be difficult, but not 5% or even 8% in a good economy.

Good luck to you!

Oldiebutgoodie

[Diary/Dairy, RN]

I don't think complete retirement is feasible or healthy in your 30's. I am not sure that I was completely clear that I don't think it is possible to achieve retirement. Reduced work hours yes but not retirement.

I agree with Tweety about taking benefits. Disability and long term care insurance are extremely important to have.

I completely understand where you are coming from - I need to feel useful and like I am contributing to society.

I also want to work towards getting the house paid off early, but I would be happy with a few years early. I do not plan on killing myself by working 48++ hours a week to get it done.

I would also not go without health insurance - things happen!

[jackson145]

I should be good enough with 1 yrs experience, and $43 hr is totally do-able, i wont take any benefits, 401k, just straight cash, i wouldn't retire completely but i could work maybe 2 days a week and pay the bills with ease, and have lots of time to be a stay at home dad, do some volunteering, spend some time with the family, my concern is that i will probably burn out, only one way to find out..

No benefits is scary. After 1 perfectly healthy child, my next was born with infantile glaucoma (he's fine now) and the bills quickly reached about $50,000 for his first surgeries. If you're going to have a family, you have to take care of yoursef for their sake. It'd be hard to do that w/o benefits.