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Source: WSJ

Category: Digital Media

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “WSJ: Get Your Nest Egg in Shape”

  1. rd says:

    When my kids start a new job, I sit down and talk to them about the facts of life (financial that is – TV and movies cover much of the rest).

    After going through a very good high school and college, they have no idea what a 401k or IRA actually is. They don’t know anything about expense ratios for mutual funds etc. They don’t know how much thay have to save to have a chance at a good retirement. They can’t put the importance of compound interest etc. and the impact of taxes into perspective regarding their personal life.

    The school systems are not teaching any of this stuff in a way that sinks in to people. When they get out into the real world, the only people who are talking to them about it are usually the salesmen looking for 5% commissions.

    I emphasize the importance of starting early, setting aside a reasonable percentage of their pay pretty much from day one, and buying simple diversified low cost index funds. When they get a raise, I talk to them about setting aside 1% more of their pay, so that they will never be in a position to miss it from their take home pay.

    Two of them have been in the work force for about 3-4 years already and each has amassed over $30k in savings in rainy day funds and retirement accounts by being frugal, saving money, and taking advantage of employers’ matches. (Neither is making over $40k/year). Lots of their friends have been spending that money on beer and dinners out instead.

    Its not difficult but you have to know what to do and know that you want to do it.

  2. sometimes, yon’ QOTD is, too, apropos..

    “When I’m bearish and I sell a stock, each sale must be at a lower level than the previous sale. When I am buying, the reverse is true. I must buy on a rising scale. I don’t buy long stocks on a scale down, I buy on a scale up.” – Jesse Livermore

    for the ‘rest’, it would behoove one to check out..Read..and Understand..BR’s generous Gift..”The Apprenticed Investor”-series..