Retire by 30, thanks nursing!

NoahNS · Dec 20, 2007

I've only read the first page of responses, but it seems like some of the respondents think you are expecting to deplete the principle over time... which is not what it sounded like to me was your intention. If you just live off the interest maybe you would even be able to save some of that income and continue to grow your investment... or, on the other hand, maybe your investment would not yield the 10% you were hoping/expecting. In any case, I think I would agree with many of the others... that you're committing yourself to a pretty fierce ambition to remain bound to for such a big chunk of time. What concerns me much more, however.... is your apparent motivation for going into nursing in the first place. If it's just money you're trying to acquire... there are certainly much better ways to pursue that ambition... and with far less risk to a critical patient population.

St. Paul had a suggestion you may wish to consider in his letter to Timothy (1 Timoth 6: 9-10):

"But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition :angryfire ... for the love of money is the root of all evil: which while some coveted after, they have erred from the faith and pierced themselves through with many sorrows."

Pretty strong word, huh...??? :uhoh3:

shodobe · Dec 20, 2007

I think the OP has all the right ideas and should continue to go forward with his plans. He might not be able to retire at 30, but closer to 50, which still isn't bad! Too many people just shrug off the thought of retirement and put very little away each month towards that goal. Most hospitals have a very generous 401k plan and alot of nurses just don't take advantage of this. I have co-workers who I scold all the time about putting money away and not relying on SS to take care of them in the future. I work also 60-7- hours a week and pull in well over 130,000 a year. The one thing is all the money I take out is not taxed and more goes into my retirement fund. Right now I am fairly comfortable and take out 14% every pay period, amounts from $700-$900 per pay period. The only regret I have is I didn't start this soon enough. I have been contributing only for the past 10 years and kick myself everytime I think about the first 20 years where I did not contribute. I probably would have well over a million dollars by now. It is never too late to start and believe me when the time comes to retire and you have a nice nest egg to live off of, you will look back and know that this was the smartest move you ever made.. Even $50 bucks a pay period now while you are young is better than nothing at all. Think smart and plan for your future, look out for yourself because no one will.

shodobe · Dec 20, 2007

St. Paul had a suggestion you may wish to consider in his letter to Timothy (1 Timoth 6: 9-10):

"But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition ... for the love of money is the root of all evil: which while some coveted after, they have erred from the faith and pierced themselves through with many sorrows."

Pretty strong word, huh...???

And your point?

shodobe · Dec 20, 2007

Hmm, the above post looks pretty insulting to the OP.
Yep! It looks very insulting.I just can't understand why people in nursing all feel it is a calling for them and money is secondary. I guess they all must be born to a well-off family and don't have to worry about their future, whether they eat dog food this week or pay for their prescription drugs. You have to look out for numero uno because employers and the federal govt isn't. people have to wake up and start planning now and stop procrastinating because they WILL regret it.

Tweety, BSN, RN · Dec 20, 2007

I just can't understand why people in nursing all feel it is a calling for them and money is secondary. I guess they all must be born to a well-off family and don't have to worry about their future, whether they eat dog food this week or pay for their prescription drugs. You have to look out for numero uno because employers and the federal govt isn't. people have to wake up and start planning now and stop procrastinating because they WILL regret it.

I think we have to open our mind to the fact that nursing is a big wide variety of individuals in it for many differing reasons. Nurses come in all shapes and sizes from all types of lifestyles and backgrounds all around this big wide world.

Some are in it for a "calling" only and aren't interested in the money. Probably the overwhelming majority of us are in it for a variety of reasons to include wanting to help people AND the nice middle income with stable job security. Then there are those few who are in it only because it's a quick way with an associates degree to make a middle income (or an above middle income if you work 60 hours a week).

I don't think it's fair for one in either one of the above categories to be critical and not understanding of someone elses lifestyle just because it's not something we choose for ourselves. I've seen a little of both here, so I'm not just talking about one or the other.

There's room for us all and we should be respectful of one another because one ideal is no better than the other just because I don't understand and don't follow that idea.

You are right about one thing for sure, those who don't start planning on retirement now, or think they can't afford it, are in for a rude awakening in their old age.

mvanz9999, RN · Dec 20, 2007

..I started saving for retirement when I was 20. Now Im 22 (will be 23 on the 25th, yay1), and investing and saving is something that comes out of my paycheck first. At times I get bashed by people my age because "you are too young to be thinking of that stuff" and "you are reading suze orman, that sounds boring." Why is it wrong for a 21 year old to think of his future? ....

....and when those same people are 40 (or 38 in my case), they will be forever kicking themselves that they did not do the same thing you are doing. They will have lost 20 years of investment growth. I know, because I'm one of them.

Of course you know you are doing the right thing, and I commend you and the OP for thinking ahead.

Jo Dirt · Dec 20, 2007

Not if you know how to invest correctly. If you save a nest egg of a million dollars and then keep it invested at 10% a year, you will reap $100,000 new income every year forever. If you can live on slightly less than $100,000, and keep the rest invested, your million dollars will keep growing so you can easily keep up with inflation.

I've heard that once you make the first million the second million is always easy.

mikethern · Dec 20, 2007

I've heard that once you make the first million the second million is always easy.

Correct. The general goal of stock investing is to double your money every 5 years. Here's an example:

Year 1 = $15,625

Year 5 = $31,250

Year 10 = $62,500

Year 15 = $125,000

Year 20 = $250,000

Year 25 = $500,000

Year 30 = $1,000,000

Year 35 = $2,000,000

It took 30 years to reach a million, but only 5 more years to reach 2 million.

And these numbers are without additional deposits.

The more money you have invested, the faster it grows. It's a snowball effect. That's why Albert Einstein called compounding the most powerful force in the universe.

tiny2 · Dec 21, 2007

If retiring at 30 was that easy, I think everyone would want to be a nurse...sorry not a realistic goal..

mikethern · Dec 21, 2007

If retiring at 30 was that easy, I think everyone would want to be a nurse...sorry not a realistic goal..

One's career choice is irrelevant. All that is required is the self discipline to save money every paycheck when you are young.

mikethern · Dec 21, 2007

.....

jacklady · Dec 21, 2007

If your telling us that 60hrs a week without a day break for 11mos..would be more than getting burn out but it's suicide... you will difficulty reach 40yrs old healthy... And it won't be enough to save for your future...

of course you have your needs too and you need enjoyments that needs money to stress out youself... If you plan to have a family or helping your love ones in the future then that range of your working time is not realistic enough to save the money that you need... But on the other hand...that could be possible to achieve if you will focus on yourself alone and never give help to those who need financial support if ever there are any..and have self control like having fun without using a little money and become a workaholic... you can surely achieve that goal... but staying healthy with those traveling work and having no 24 hrs break in a week would be a big question mark??? you should prepare also yourself to die by then... but actually its up to you...God bless you in your decisions in life....Take care NURSE!

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?