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Posted by asfdz on Oct-20-2006 16:18:

Savings

http://articles.moneycentral.msn.co...MeasuresUp.aspx

Consider this: Someone who puts $4,000 a year into retirement accounts starting at 22 can have $1 million by age 62, assuming 8% average annual returns. Wait 10 years to start contributions, and you'd have to put in more than twice as much -- $8,800 a year -- to reach the same goal.

omg I'm starting next year

Posted by Aquarian on Oct-20-2006 16:20:

If only I had 4000 bucks to spare.

Posted by Moral Hazard on Oct-20-2006 16:33:

quote:
Originally posted by Aquarian
If only I had 4000 bucks to spare.

No worries my friend.... in Canada unused RRSP elligability acrues so whatever you don't use in any given year remains elligable for later. I threw 25K into an RRSP this year to use up my past unused alotment (in addition to the 15% of my income I've been putting away for the past 7 years).

Posted by Ozoned12 on Oct-20-2006 16:43:

Cool I'm in that. I have a deal where I can get it out tax free also. I love the rule of doubles.

Posted by _Nut_ on Oct-20-2006 16:57:

You do realize you need a good fiduciary or else a job that participates in retirement (not all do). Why do you 'have to start next year' ? If you are that excited over it, start now.

Tips for people that haven't put money away and may think about doing it. Get used to having 10-15% of your paycheck out and regularly put into a 401k/roth etc. Its easy to get used to. Don't think that "omg I could have used the extra 400 dollars this month" or what ever. Live by a budget and you will be rewarded later.

Posted by Moral Hazard on Oct-20-2006 17:07:

quote:
Originally posted by _Nut_
Tips for people that haven't put money away and may think about doing it. Get used to having 10-15% of your paycheck out and regularly put into a 401k/roth etc. Its easy to get used to. Don't think that "omg I could have used the extra 400 dollars this month" or what ever. Live by a budget and you will be rewarded later.

I've always found if your employer takes it right off your cheque (CND spelling) for you you really don't even notice it.

Posted by EXTREMUM on Oct-20-2006 17:14:

quote:
Originally posted by Moral Hazard
I've always found if your employer takes it right off your cheque (CND spelling) for you you really don't even notice it.

x2

Posted by EarnYourKeep on Oct-20-2006 17:32:

ROTH IRA ROTH IRA ROTH IRA

Posted by Frenchie on Oct-20-2006 20:21:

quote:
Originally posted by Moral Hazard
I've always found if your employer takes it right off your cheque (CND spelling) for you you really don't even notice it.

+2

Posted by asfdz on Oct-20-2006 20:24:

Re: Savings

quote:
Originally posted by Azia
have $1 million by age 62

one million sounds so damn nice.

and yes, direct deposit ftw

Posted by idoru on Oct-20-2006 20:39:

I was actually thinking about this yesterday, when my mom mentioned she has like, $56,000 or something put away from retirement. It kinda creeps me out knowing that, unless I find some source of income during retirement, I'll only have a limited amount of funds. Like, I don't see saving enough to live off of to be a problem, but eh... it just creeps me out.

Posted by _Nut_ on Oct-20-2006 21:05:

Re: Re: Savings

quote:
Originally posted by Azia
one million sounds so damn nice.

and yes, direct deposit ftw

Direct deposit has nothing to do with retirement.

Posted by jonSun on Oct-20-2006 21:30:

quote:
Originally posted by Moral Hazard
I've always found if your employer takes it right off your cheque (CND spelling) for you you really don't even notice it.

+ 99. yep thats awesome, when i had 401k for a couple years i had 5% taken outta my checks with the company matching a lil bit of it. Next thing i knew i had $25k sitting there.

Posted by igottaknow on Oct-20-2006 22:06:

i read some where its a bad idea to save

Posted by Ang ' ela_ie on Oct-20-2006 22:49:

Yeah, Ill start saving right after I pay off the 30 THOUSAND DOLLARS OF DEBT IM IN.

Posted by Ygrene on Oct-20-2006 23:03:

quote:
Originally posted by Ang ' ela_ie
Yeah, Ill start saving right after I pay off the 30 THOUSAND DOLLARS OF DEBT IM IN.

Hahahahahaha!! Ang it seems so hard doesn't it?? In about two more years though I should be done with my debt and I've already got good saving/retirement practices in place. When I finally make that last payment it will be like I've gotten a HUUUUUUUGGE raise. The anticipation of it makes the balancing act worthwhile.