UNCOMMON CENTS 78

ABOUT 66% - 2/3RDS - OF WORKERS UNDER 30, CASH OUT THEIR 401K ACCOUNTS WHEN SWITCHING JOBS. DO THEY NOT KNOW THAT YOUTH AND TIME ARE THE ONLY ASSETS THEY CAN USE TO BENEFIT THEIR FUTURES? CONSIDER TWO SCENARIOS. ONE 22-YEAR-OLD DOES NOT PUT AWAY ANY SAVINGS UNTIL AGE 34 AND THEN SAVES $6,500 AND INCREASES HIS SAVINGS $500 EACH YEAR UNTIL 65. HE WILL HAVE $1.6 MILLION BY AGE 65 ASSUMING HE HAS HAD AN 8% ANNUAL RETURN. ANOTHER 22 -YEAR-OLD SAVES $500 FROM THE FIRST YEAR OF HIS EMPLOYMENT AND ADDS $500 EACH YEAR UNTIL 65, AGAIN ASSUMING AN 8% ANNUAL RETURN. THE STEADY SAVER WILL HAVE 2.3 MILLION UPON RETIREMENT. WHAT DIFFERENCE DOES A MILLION DOLLARS MAKE? ACTUALLY, A MILLION DOLLARS WAS LOST, FOREGONE FOR THE 12 YEARS BETWEEN 22 AND 34 FOR THE ONE WORKER. THAT MAKES FOR AN APPRECIABLE IN RETIREMENT SECURITY AND SAVINGS.

DON’T LET GEORGE, THE GOVERNMENT, DO YOUR SAVING FOR YOU VIA PAYMENTS TO SOCIAL SECURITY; THIS IS NOT ENOUGH. SAVE IN A 401K PLAN AND INVEST IN AN ACROSS THE BOARD U.S. STOCKS MUTUAL FUND FOR THE LONG TERM, SAY 40 YEARS, WHEN YOUTH AND TIME ARE ON YOUR SIDE. PRESERVE YOUR SAVINGS IN A 401K AND CONTINUALLY ADD TO THEM IN A LIMITED PORTFOLIO ( ONE OR TWO FUNDS). WATCH THEM GROW AS YOUR STATURE GROWS IN FISCAL RESPONSIBILITY.

HINT: A MAN WHO SCORNED MONEY MAKING, OFTEN RELYING ON OTHERS FOR SUSTENANCE, BUT WHO WAS CONSCIOUS OF HIS OWN MORALS SAID, " THERE IS NEVER AN INSTANT'S TRUCE BETWEEN VIRTUE AND VICE. GOODNESS IS THE ONLY INVESTMENT THAT NEVER FAILS." HENRY DAVID THOREAU DISPLAYED A NAIVETE IN HIS CONVICTION BECAUSE HE FAILED TO PERCEIVE THAT SELF-SUFFICIENCY IS A MORAL GOOD RESULTING IN FINANCIAL INDEPENDENCE.