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Let's talk retirement

abecedarian said:
You can use the equity in your home to get the cash you need to buy investment properties. There are tons of books out there that tell you how. Just be careful of the ones that promise easy wealth with OPM-other people's money-check the laws of your area and read more than one author.
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I would caution anyone on going the route of using the equity in your home for investing, either in other properties or stock. There are significant risks involved, like losing your home. As abecedarian states, read all you can on it including both the pros and cons.

My financial lesson learned is that steady investing/saving will beat trying to make a killing 99.9% of the time.

Disclaimer: "Past performance is no quarantee of future results". :)
 
Retirement? Thats quite a long way off for me unfortunatly. I havn't even had my first pay check yet and your talking about retirement :eek:
 
I know a girl who saved all her babysitting money and bought a brand new car with cash by the time she was 17. She sat a lot, and was careful when she shopped, and even more careful after she plunked down her own money for the car. If a car isn't what you need, choose a different goal.
 
abecedarian said:
I know a girl who saved all her babysitting money and bought a brand new car with cash by the time she was 17. She sat a lot, and was careful when she shopped, and even more careful after she plunked down her own money for the car. If a car isn't what you need, choose a different goal.
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Oh yes, i'm saving a lot of money, too, but will have to spend it next year in order to get a student loan. They won't give it to me if I have saved too much money. :(
So I won't be able to start saving for retirement until I finished studying...
 
Rigana said:
Oh yes, i'm saving a lot of money, too, but will have to spend it next year in order to get a student loan. They won't give it to me if I have saved too much money. :(
So I won't be able to start saving for retirement until I finished studying...
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I think that's such a ridiculous concept, but don't get me started on student loan policies... :rolleyes:

Based on my experience, if I were in your situation I would use that money to pay part of my school fees up front. When you first start university the idea of a student loan isn't really that troubling, but when you come out and realise that you owe umpty-dum thousand dollars/euros, it's a different matter. And when there's interest on top of that... well, let's just say that every dollar off your debt helps *a lot*. If that doesn't appeal, perhaps your parents can invest this money for you in a fund that you will gain control of at the completion of your degree - there are usually ways to do this legally.

If none of that appeals, invest the money in assets that you need for school and would buy anyway. This may be books, furniture, electrical goods, etc. This is particularly good if they are things you will be using for a long time to come.

Disclaimer: This is just my thinking based on my own $25 000+ debt, which I wish I'd worked on paying off throughout my degree, and from hearing Canadian students talk about their student loan conditions, and watching them fritter their loans away like it was 'free' money.
 
Billy said:
Ah, you are lucky. Our govt. phased out the pensions for retired teachers just before I started teaching. We have superannuation now, which will not give me enough to live on when I retire. But I am optimistic. :p I plan to buy a few houses one day and when I retire, I will seel the most expensive one and use the money to pay of the other two and then I will be able to live off the rents. :) Now all I have to do is get the money to buy the houses. ;)
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Yeah, a lot of private businesses are starting to pull the rug out from under people when it comes to pensions.:mad: :mad:
 
Kookamoor said:
I think that's such a ridiculous concept, but don't get me started on student loan policies... :rolleyes:

Based on my experience, if I were in your situation I would use that money to pay part of my school fees up front. When you first start university the idea of a student loan isn't really that troubling, but when you come out and realise that you owe umpty-dum thousand dollars/euros, it's a different matter. And when there's interest on top of that... well, let's just say that every dollar off your debt helps *a lot*. If that doesn't appeal, perhaps your parents can invest this money for you in a fund that you will gain control of at the completion of your degree - there are usually ways to do this legally.

If none of that appeals, invest the money in assets that you need for school and would buy anyway. This may be books, furniture, electrical goods, etc. This is particularly good if they are things you will be using for a long time to come.

Disclaimer: This is just my thinking based on my own $25 000+ debt, which I wish I'd worked on paying off throughout my degree, and from hearing Canadian students talk about their student loan conditions, and watching them fritter their loans away like it was 'free' money.
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There are no fees for universities yet, and my student loan has great conditions. Half of the money is free, the other half is to be repaid 5 years after I finished university with no interest. Besides, I'll only have to pay to a maximum of 10 000€. :) It's a loan for students, whose parents can't afford to pay for the education. The only thing is that I'm not allowed to own more than 5200€. So I think I will buy a laptop next year, I'll need one anyway.
 
Rigana said:
There are no fees for universities yet, and my student loan has great conditions. Half of the money is free, the other half is to be repaid 5 years after I finished university with no interest. Besides, I'll only have to pay to a maximum of 10 000€. :) It's a loan for students, whose parents can't afford to pay for the education. The only thing is that I'm not allowed to own more than 5200€. So I think I will buy a laptop next year, I'll need one anyway.
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Ah! Well that makes a bit more sense - sounds like a good system. We have a fairly good system in Oz too (well it was good when I went through, but it's headed for the crapper now, I think). But here in Canada there are all sorts of rules that determine whether you get a student loan or not, and some of them are really silly, and basically deter students from getting a summer job.

Sounds like a solid plan you've got there!
 
I'm 25 (26 in January), and I've been saving for almost the last two years. I have a simple IRA, and now I have a 401k. I'll probably roll the Simple IRA over into the 401k in January.

I save, but it may not be necessary one day. My girlfriend, soon to be fiance, is studying to be a doctor, so she'll be making some real money in another ten years. Then, anything I've saved will be small potatoes.

I save anyway though because you never know what could happen. I keep about US$4k in my savings account just in case I get fired, leave, get arrested, etc.
 
RainbowGurl said:
Retirement? Thats quite a long way off for me unfortunatly. I havn't even had my first pay check yet and your talking about retirement :eek:
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Fear not - retirement will soon be upon you. As will old age, and then death.
 
CDA said:
Fear not - retirement will soon be upon you. As will old age, and then death.
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And taxes, don't forget about taxes. Even before earning a first paycheck, we get to pay taxes just to buy a pack of gum.:rolleyes:
 
CDA said:
Fear not - retirement will soon be upon you. As will old age, and then death.
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Remember the old saying.

Life is like a roll of toilet paper. The closer to the end, the faster it goes. :)
 
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