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That only works if you start at 25 when you graduate. Not a viable plan for someone approaching 40 who wants to make sure they can continue to support themselv
by pmiller2 7y ago
That only works if you start at 25 when you graduate. Not a viable plan for someone approaching 40 who wants to make sure they can continue to support themselves into their 60's and beyond.
- kls 7y agoA solid Plan-B is to learn an older tech where people are already retiring out of. Examples would be anything IBM used in the 80's early 90's. C/C++, COBOL, JCL, UNIVERSE, VB6, etc. etc. Young people are not competing for this work and you would be surprised at how much it can float you thru lean times if you need to lean on it.
- icedchai 7y agoObviously you need to plan ahead, perhaps read some personal finance books now and then. "The Millionaire Next Door" is still relevant. I read it when I was 22, followed most of it...
- AnimalMuppet 7y agoWhy? Someone who starts at 40 is probably earning more than someone at 25. And someone at 40 has fewer years left to support themselves after their 15-20 years of saving are up.
- twblalock 7y agoBecause 15 years of compound interest in the stock market more than covers the difference in income between a 25 year old and a 40 year old. The 25 year old has enough time to take risks with money, while the 40 year old needs to be thinking more about preservation of capital.
- AnimalMuppet 7y agoI don't think so. The 25-year-old needs the money starting in 20 years; so does the 40-year-old. The 25-year-old needs the money to last 45 years after retirement; the 40-year-old needs it to last 30 years. Those aren't significantly different time horizons. The 40-year-old can therefore invest with a very similar risk profile, and get very similar returns.
- pmiller2 7y agoThe idea is that by 40, you have accumulated enough to exit the software field.