I’m 23.5 years old, and I’m preparing for retirement. Some of my college friends think I’m crazy. Sometimes, I think the same thing too =).
Since graduating college, the last several months have been spent browsing the internet for any and all information I could find about financial responsibility. I was particularly interested in learning how to build my nest egg. After receiving my first paycheck and losing a crap load of money to taxes, I was even more motivated to setup my 401k to avoid some tax. I wanted to max it out! Well, after further evaluation, this wasn’t the best thing for me to do…
From my research, I found that most of the information online was geared toward a broad audience of young professionals. Although that is great for the website, the information wasn’t specific enough for my own personal finance needs. Through continued research, I think I’ve determined what I should do. Without getting into too much specific detail, I’ll reveal some background information about my financial status.
At 23.5 years of age, I will have a whooping 36 years before I can access the money I place into a 401k. Now, some of you may think this is great. But to me (no offense to the older readers), 36 freakin years is longer than I’ve been alive… WHA!? And, at 59.5 years of age, I would hope that I could still be employed… preferably as a top executive in a great company (fingers crossed). Also considering future advances in medicine along with my desire to be healthy, I plan to live for quite a while… The point I’m making is that by the time I reach retirement age and beyond, I hope to still have a source of income in addition to my nest egg. Ideally, I would have the option to retire, but prefer to work for a company I love. This remains to be seen…
With such a long time to go, I have to balance between wanting to have fun with my money now, and wanting to have enough to raise a family tomorrow.
So here is what I plan to do. Please share your opinion if you think I’m a total lunatic… I need all the help I can get =)
As my income rises and personal priorities change, the nest egg mix I outlined above will adjust accordingly. I can see myself placing more money in the stock market as my earnings grow.
Overall, I hope my net worth finds the miracle of compound interest!