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May 03, 2012


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401k match? What is that?

Oh yeah something my employer did before the Great Recession.

Get really comfortable with using the words, "I can't afford it".

Too many successful young people have a burning desire to possess things that they cannot really afford so they squander their future by buying them anyway, primarily to impress their peer group.

Examples from a group of 45-55 year olds that my youngest (very frugal) daughter is now part of:
Flashy automobiles
$100K Country Club and golf club memberships, expensive wines
Private schools and out of state universities for their kids
5 br, 5ba, 4500sf homes with expensive furnishings and landscaping, and in gated communities.

This is how the "Want it all now" high income, hi-tech generation like to live.

I wish my youth was spent more mindfully. I always invested in a 401(k) at the company match -- but only after the mistake of working 3 years without investing at my first job. I missed out on investing thousands by ignoring the 401(k) opportunity the first 3 years.

I put a lot away for retirement and follow a lot of what this post says. I put 1/2 to my whole raise to retirement depending on the year. I am now up to 21% post tax into Roth 401(k) and Roth IRA and that doesn't include my employer's 4% non-roth match. I think this will really set me up well and hope others my age (mid twenties) can catch on while their expenses are low and they have time on their side. I attribute a lot of my success to reading many PF blogs throughout high school and college.

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