Comments on: The Road to Millions Starts at Age 16

By: Sharon

Sharon — Mon, 14 Mar 2011 23:41:39 +0000

Do you have any recommendations on which firms to open a Roth IRA with that don’t charge fees, etc?

By: susie

susie — Thu, 15 Apr 2010 06:28:07 +0000

Oh how I wish I could go back in time and save more money at such a young age. I can’t even say that I didn’t understand compounding interest, I did. I just was not mature enough to implement it.

By: Alex

Alex — Tue, 14 Jul 2009 02:27:12 +0000

I’m 16 and have some money. Unfortunately I can’t find a job (live in a small town with normally limited prospects, even more limited due to the economy). As soon as I get a job though, I plan on opening a brokerage account, and eventually retiring early like the first comment said.

By: Damon Day

Damon Day — Thu, 25 Jun 2009 22:14:59 +0000

Excellent post Stephanie,

For those that are wondering, if you continued to contribute to the IRA in this example 2000 per year at(167 per month)your total would be up over 4 million at the age of 67.

If you feel that 10.7% is not likely, well, if you start at say 20 years old, and put 2000 a year into a roth or traditional ira and earn a modest 8% interest it would be worth over 1.3 million by age 67. Remember you are only investing a total of $94,000 of your own money and you will have 1.3 million at retirement.

Now what if you are 40 and think you missed the boat? Take advantage of an employer sponsored 401K. Lets say you contribute 700 per month, and you get a 300 dollar match from the company. If you gasp at $700, remember that is pretax money. So it is probably close to $490 after tax dollars.

At a 10% interest rate your 401K will have over 1.6 million dollars in it by the time you are 67. The point is that it is never too late to start. Save more, spend less, get out of Debt.

By: Gholmes

Gholmes — Fri, 20 Feb 2009 22:17:05 +0000

Great Post, will share with teenage son!

By: Stephanie

Stephanie — Sat, 29 Nov 2008 02:07:21 +0000

@Victoria -

I appreciate your concerns. I grew up in a rural area, where poverty was very common. I’m afraid, however, that each of us is best suited to write what they know. I highly doubt that a personal reading this blog will be able to use absolutely everything written here – instead of trying to write each article for everyone, I target individual articles to different groups. This particular article happens to be written for teenagers and college students who work jobs that provide discretionary income.

I hope to write something for the group you mention – however, as I’m sure you’re aware, there are no easy answers. If there were, it wouldn’t be an actual problem.

No matter what, though, I believe the basic principle of personal finance apply to everyone. You can only get ahead if you can find a way to live on less than you earn, and put away the rest into some sort of savings. My goal, with this site, is to reword, rework, and reiterate that for different situations, because it nearly always applies.

I hope I can someday get to the point where I can help the truly impoverished to help themselves. I’m working my way there, I suppose, but starting with what I know.

By: Victoria

Victoria — Fri, 28 Nov 2008 23:59:24 +0000

Can anyone give realistic financial tips to people who were born in and still live in poverty? Saving a few dollars here and there in a frivolous retirement plan is not realistic if you’re feeding and caring for minor children and ailing parents and/or grandparents at the same time, if you’re working two jobs to keep from living on the street or engaging in less-than-legal career options, or if an emergency or chronic illness forces you to squeeze your last penny on your survival. Will those of us who live in the real world ever be given a method to save money when most of us are forced to use 75% to 90% of what income we get on rent and whatever remains to be used on food, lights, gas or heating oil, water, sewer or garbage, phone, and medical care? Welfare, SSI, SSD, food stamps, Medicaid, TANF, and WIC only go so far, along with a minimum wage of only $6.85 an hour. Let’s present some realistic tips on how to pull people out of poverty first before even thinking about showing rich kids how to save their summer job money and invest it, OK?

By: Denise

Denise — Sat, 21 Jun 2008 12:26:04 +0000

You may not be able to make a lot in the teens but knowing your money and the way it works will go a long way.

By: Brian

Brian — Mon, 16 Jun 2008 11:45:20 +0000

My father both employed me in his small company and showed me what would happen with a Roth IRA when I started high school. I was hooked. I’ve always been cheap and greedy and never made megabucks at any job, but I’m glad to say that I was able to put away a good chuck of change in high school and now have $20k in my Roth. Even at only 8% compounded, I will have more when I am my parents age than they have now if I never save another dime. As a saver, I’m excited.

Wish my parents and I had the funds to continue in college and grad school but life isn’t quite 100% fair and expensive private schools are expensive. Looking forward to starting to add more to it in the coming years.

By: Newspaper articles

Newspaper articles — Tue, 10 Jun 2008 20:29:43 +0000

Heh, I actually did this (I just finished my junior year of college). It was a bummer that I couldn’t go out with my friends as much as I wanted but I think it’s all going to be worth it when I retire. Plus I get to be inwardly smug. I just hope I don’t die young.