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?

[RNBelle]

as my dad said "you have your entire life to work". take the time to smell the roses, run off to europe, etc. i work 3 12's a week and cant even think about working anything more than that.

[kukukajoo, LPN]

If you are talking about Dave Ramsey's plan he actually says to pay off the smallest balance loans first, in order, up to the highest and ignore the interest rates. Each time you pay off a debt you add that payment onto the next debt so by the time you get to the last one (probably a big ol' student loan) you have a huge amount of money to throw at it.

Dave Ramseys is one way and there are others. I just finshed his book and hadn't read it before reading of the other ways (I actually bought it after doing a web search for debt snowball). I think that his idea with beginning with the smallest is that you feel accomplished when first is paid off and just keep going with that motivation.

Truly though you can save money if you calculate which ones are costing you the most each month in interest, and it may not be the highest interest or balance. A local community service agency here has software where you plug in all your debts and interest rates and balances and it tells you which order to pay down in to maximize you savings on interest. It is really neat and I have not seen anything like it for sale anywhere. Once I graduate I plan on hitting it up for sure.

[sherylcross]

I agree with Jackson!

it would be better if you are insured. I've already purchased long term care insurance for myself though Im only 31. The common misconception is that the elderly only needs it, but that's wrong. in fact, people receiving long term care are those with chronic illnesses and disabilities. However, it's only for those who can afford to pay the premiums.

Although you have lavish retirement savings, they can just swept away given the fact that elderly care is very expensive. Many rely on Medicaid/Medicare to no avail.

[NM nurse to be]

Wow this is an old thread! I wonder if the OP is still around and how the grand plan is developing by now?

[red2003xlt, LPN]

She retired .......

[yourfriend]

Taxes will take a lot of that OT money!

[TDCHIM]

Wow this is an old thread! I wonder if the OP is still around and how the grand plan is developing by now?

His profile says he hasn't been here for over a year. If he's trying to carry out the plan he described, I can certainly understand that!

[hpcat]

I agree with Jackson!

it would be better if you are insured. I've already purchased long term care insurance for myself though Im only 31. The common misconception is that the elderly only needs it, but that's wrong. in fact, people receiving long term care are those with chronic illnesses and disabilities. However, it's only for those who can afford to pay the premiums.

Although you have lavish retirement savings, they can just swept away given the fact that elderly care is very expensive. Many rely on Medicaid/Medicare to no avail.

I had a major neck injury at age 35 but fortunately my then employer gave me long term disability insurance. I couldn't work or drive even for a year and a half. Short term disability and saved personal/sick time runs out fast - I was so happy to have that protection. You may not be permanently disabled but you could have an illness or injury that puts you out of commission for a long period.