Comments on: Financial Security of Generation Y http://www.quarterlifemag.com/2009/11/financial-security-of-generation-y/ Our Own Words Sat, 04 Feb 2012 17:45:00 +0000 hourly 1 http://wordpress.org/?v=3.1-RC2 By: Dodd Hulsey http://www.quarterlifemag.com/2009/11/financial-security-of-generation-y/comment-page-1/#comment-136 Dodd Hulsey Mon, 07 Dec 2009 22:16:49 +0000 http://www.quarterlifemag.com/?p=1557#comment-136 Victoria, <br>First of all let me say congratulations on your MBA; and yes, you did work too hard to struggle like this, but unfortunately these things take time to pay off. Remember that an MBA is a "forever asset", no one can ever take it away from you for the rest of your life. That being said, let's move onto your current situation. I have struggled with the exact same question with my own career. My personal opinion, which is shared by some other finance professionals, is to contribute the minimum amount that you can to the 401k plan. If this still taxes your monthly budget too much or wipes out your savings and extra credit contributions, then I would opt out of the retirement plan for the time being. I am assuming that your company has a 401k match. If they do not then don't even bother with it until you have paid off your high interest credit cards. I have always felt that retirement accounts are great and the tax benefits of a 401k are very appealing along with the employer match, but...<br>(here comes the hate mail) retirement is just that, for retirement, and there is no guarantee that you will even live to see it. You should be prepared for life in every way, and you should plan for the future, but the time value of money says that a dollar today is worth more than a dollar tomorrow. If you are paying +20% on a college credit card and drowning in debt then I think it wiser to forgo the 401k for a year and pay down your debt making your monthly debt ratio more comfortable and thus you more happy and stress free about life, career, and even retirement programs.<br><br>Best of luck and don't sweat the small stuff, the MBA will pay off.<br><br>Dodd Hulsey <br>The Banker<br>Quarterlife Magazine Victoria,
First of all let me say congratulations on your MBA; and yes, you did work too hard to struggle like this, but unfortunately these things take time to pay off. Remember that an MBA is a “forever asset”, no one can ever take it away from you for the rest of your life. That being said, let's move onto your current situation. I have struggled with the exact same question with my own career. My personal opinion, which is shared by some other finance professionals, is to contribute the minimum amount that you can to the 401k plan. If this still taxes your monthly budget too much or wipes out your savings and extra credit contributions, then I would opt out of the retirement plan for the time being. I am assuming that your company has a 401k match. If they do not then don't even bother with it until you have paid off your high interest credit cards. I have always felt that retirement accounts are great and the tax benefits of a 401k are very appealing along with the employer match, but…
(here comes the hate mail) retirement is just that, for retirement, and there is no guarantee that you will even live to see it. You should be prepared for life in every way, and you should plan for the future, but the time value of money says that a dollar today is worth more than a dollar tomorrow. If you are paying +20% on a college credit card and drowning in debt then I think it wiser to forgo the 401k for a year and pay down your debt making your monthly debt ratio more comfortable and thus you more happy and stress free about life, career, and even retirement programs.

Best of luck and don't sweat the small stuff, the MBA will pay off.

Dodd Hulsey
The Banker
Quarterlife Magazine

]]> By: Dodd Hulsey http://www.quarterlifemag.com/2009/11/financial-security-of-generation-y/comment-page-1/#comment-129 Dodd Hulsey Mon, 07 Dec 2009 15:16:49 +0000 http://www.quarterlifemag.com/?p=1557#comment-129 Victoria, <br>First of all let me say congratulations on your MBA; and yes, you did work too hard to struggle like this, but unfortunately these things take time to pay off. Remember that an MBA is a "forever asset", no one can ever take it away from you for the rest of your life. That being said, let's move onto your current situation. I have struggled with the exact same question with my own career. My personal opinion, which is shared by some other finance professionals, is to contribute the minimum amount that you can to the 401k plan. If this still taxes your monthly budget too much or wipes out your savings and extra credit contributions, then I would opt out of the retirement plan for the time being. I am assuming that your company has a 401k match. If they do not then don't even bother with it until you have paid off your high interest credit cards. I have always felt that retirement accounts are great and the tax benefits of a 401k are very appealing along with the employer match, but...<br>(here comes the hate mail) retirement is just that, for retirement, and there is no guarantee that you will even live to see it. You should be prepared for life in every way, and you should plan for the future, but the time value of money says that a dollar today is worth more than a dollar tomorrow. If you are paying +20% on a college credit card and drowning in debt then I think it wiser to forgo the 401k for a year and pay down your debt making your monthly debt ratio more comfortable and thus you more happy and stress free about life, career, and even retirement programs.<br><br>Best of luck and don't sweat the small stuff, the MBA will pay off.<br><br>Dodd Hulsey <br>The Banker<br>Quarterlife Magazine Victoria,
First of all let me say congratulations on your MBA; and yes, you did work too hard to struggle like this, but unfortunately these things take time to pay off. Remember that an MBA is a “forever asset”, no one can ever take it away from you for the rest of your life. That being said, let's move onto your current situation. I have struggled with the exact same question with my own career. My personal opinion, which is shared by some other finance professionals, is to contribute the minimum amount that you can to the 401k plan. If this still taxes your monthly budget too much or wipes out your savings and extra credit contributions, then I would opt out of the retirement plan for the time being. I am assuming that your company has a 401k match. If they do not then don't even bother with it until you have paid off your high interest credit cards. I have always felt that retirement accounts are great and the tax benefits of a 401k are very appealing along with the employer match, but…
(here comes the hate mail) retirement is just that, for retirement, and there is no guarantee that you will even live to see it. You should be prepared for life in every way, and you should plan for the future, but the time value of money says that a dollar today is worth more than a dollar tomorrow. If you are paying +20% on a college credit card and drowning in debt then I think it wiser to forgo the 401k for a year and pay down your debt making your monthly debt ratio more comfortable and thus you more happy and stress free about life, career, and even retirement programs.

Best of luck and don't sweat the small stuff, the MBA will pay off.

Dodd Hulsey
The Banker
Quarterlife Magazine

]]> By: Will http://www.quarterlifemag.com/2009/11/financial-security-of-generation-y/comment-page-1/#comment-113 Will Thu, 26 Nov 2009 01:22:17 +0000 http://www.quarterlifemag.com/?p=1557#comment-113 Hi Victoria, I hope you don't mind but I'm going to pick on a couple of things you said and hopefully provide some sort of alternative perspective.<br><br>"I know I have to do it and I will" - to me this sounds like the world has placed this expectation on you to follow the establishment. The same excuses and reasons, such as 'saving for the future' or 'free money', are being fed to you - but I ask, are they really YOUR reasons as well? Try thinking about how much YOU value each dollar at this very point of time (and not the value the market, or any one else in finance says). Is $1 to you worth more to your lifestyle right now or is it worth more to you to have it turn into $10 thirty years from now? <br><br>"I didnt get an MBA to struggle like this...." - our generation has grown up in a very structured world, where the notion of success will arrive once we complete school, then university, then post-grad, then land that awesome high paying job and we'll never have to 'struggle'... but life isn't logical like that. Some people are lucky, some aren't, we just gotta do the best we can - we can't expect success to arrive just because we received a piece a paper.<br><br>Above all I do sympathise with your concerns, but we have what it takes to make the world a better place. I suggest we break more rules - as a generation we do that pretty well ;) Hi Victoria, I hope you don't mind but I'm going to pick on a couple of things you said and hopefully provide some sort of alternative perspective.

“I know I have to do it and I will” – to me this sounds like the world has placed this expectation on you to follow the establishment. The same excuses and reasons, such as 'saving for the future' or 'free money', are being fed to you – but I ask, are they really YOUR reasons as well? Try thinking about how much YOU value each dollar at this very point of time (and not the value the market, or any one else in finance says). Is $1 to you worth more to your lifestyle right now or is it worth more to you to have it turn into $10 thirty years from now?

“I didnt get an MBA to struggle like this….” – our generation has grown up in a very structured world, where the notion of success will arrive once we complete school, then university, then post-grad, then land that awesome high paying job and we'll never have to 'struggle'… but life isn't logical like that. Some people are lucky, some aren't, we just gotta do the best we can – we can't expect success to arrive just because we received a piece a paper.

Above all I do sympathise with your concerns, but we have what it takes to make the world a better place. I suggest we break more rules – as a generation we do that pretty well ;)

]]> By: captain_pete http://www.quarterlifemag.com/2009/11/financial-security-of-generation-y/comment-page-1/#comment-111 captain_pete Wed, 25 Nov 2009 15:22:37 +0000 http://www.quarterlifemag.com/?p=1557#comment-111 Gen Y is currently talking about how they budget and what their money concerns are on The Next Great Generation. Check it out: <a href="http://www.thenextgreatgeneration.com/2009/11/23/budget-track-spend-money/" rel="nofollow">http://www.thenextgreatgeneration.com/2009/11/2...</a> Gen Y is currently talking about how they budget and what their money concerns are on The Next Great Generation. Check it out: http://www.thenextgreatgeneration.com/2009/11/2…

]]> By: Victoria http://www.quarterlifemag.com/2009/11/financial-security-of-generation-y/comment-page-1/#comment-110 Victoria Wed, 25 Nov 2009 15:19:41 +0000 http://www.quarterlifemag.com/?p=1557#comment-110 I would like to do all these things, but I am paying down credit card debt earnestly right now, paying on the student loans, and trying to save a meager little amount. My salary is still ridiculously low given my education and work experience, but I am eligible for a 401k in January...I know I have to do it and I will, but how on earth am I supposed to do this? I cant even afford it, so I will sturggle there, probably save less in my savings account...no roth or investments or nest egg for me. (and we're not even talking about healthcare expenses at all) <br>I know the economy is crap, but when is it going to get better? I didnt get an MBA to struggle like this....<br><br>Good post though!!! it is definitely all needed so we will be able to retire with dignity someday. I would like to do all these things, but I am paying down credit card debt earnestly right now, paying on the student loans, and trying to save a meager little amount. My salary is still ridiculously low given my education and work experience, but I am eligible for a 401k in January…I know I have to do it and I will, but how on earth am I supposed to do this? I cant even afford it, so I will sturggle there, probably save less in my savings account…no roth or investments or nest egg for me. (and we're not even talking about healthcare expenses at all)
I know the economy is crap, but when is it going to get better? I didnt get an MBA to struggle like this….

Good post though!!! it is definitely all needed so we will be able to retire with dignity someday.

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