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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I don't understand how people are say, in their 40s, with roughly a $200k income (assume didn't earn that the whole time) and have multiple millions of dollars in investments....? Were you able to max 401ks or something from day 1 at age 21?

Even if you max your 401k from age 21, it would take 20+ years to get to "multiple millions" with compounded interest[/quote]

"Were you able to max 401ks or something from day 1 at age 21?"

Married at 23, and then...yes.

"it would take 20+ years to get to "multiple millions" with compounded interest"

Correct. [/quote]

Well dang, hats off to you. Got till my 30s before even starting a 401k or accruing much savings at all (and then.... kids and daycare).[/quote]

This is why 20 somethings need to learn the importance of starting early.  My kid has been maxing their Roth since Age 17 and now out of college, at least 15% into their 401k as well.  They are quickly realizing that if they were to stop "retirement savings" at age 30, they will still have over $4M at retirement.  Obviously they won't stop, but the compounding advantage is HUGE.  Now when they marry and start having kids, they wont have to worry as much about retirement---they can focus on college savings and living life with the kids.  Sure they could have spent it all and not saved, but they are frugal and understand the advantages of early investing.

[/quote]

Sure. I honestly was clueless in my 20s. Raised by a single parent who didn't graduate highschool, but I went to college and got a first job earning $30k and literally had no idea what I was doing. My mom didn't even bother to file taxes on her barebones income.

Folks like me are not uncommon. I think it's great that 401k enrollment is now automatic as it will help those of us who release didn't have a clue and took awhile to figure it out. I felt rich having $20k savings (and that's it) by my late 20s along with a paid off car and minimal loans. The tiny amount of savings I put into a retirement account, I wound up completely withdrawing to do a down payment on a $200k fixer upper house with my spouse in 2010. After purchase fees, our equity was less than one percent and we fixed it up with most of the rest of my $20k savings to a slightly more livable condition, albeit using family and never doing permits and probably illegal work.

I agree with the poster that people don't realize how much simply having knowledgeable family who can help in any way - through paying even half your college tuition, helping you get a car, and most importantly, TEACHING you about saving (what to prioritize) and interest rates, etc helps people get ahead. I'm now trying to do this for my couple teen/young adult nephews who, like me, are growing up with a single, uneducated parent who earns minimum wage.

[b]I am a big proponent of making basic financial education mandatory in public schools. I don't know why school districts don't.[/b] Forget home ec.[/quote]

You don't know why?  It's because public schools' primary function is to indoctrinate your kids into left-wing ideologies.  Saving and investing and personal responsibility are too "capitalist" and could promote independent thinking.[/quote]

Oh god. shut up.

Why aren't republicans promoting mandatory personal finance education in both public and private schools then? [/quote]

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