Korean Job Discussion Forums

[cdninkorea]

Once in a while my money-savvy mother will suggest I start saving for retirement. I always reply that I'm saving to go back to school and pay my undergrad loans, so that will have to wait.

But I've been thinking lately that I should reconsider that. I just read an article on MSN Money that people in their twenties should save 10 percent of their income toward retirement (this percentage should double in later decades). I'm 25.
I don't think I can afford to set aside 10 percent because of my other saving goals, but maybe it would be better long term to pay my loans and save for school less aggressively and put something aside for retirement.

But then there's the problem of how to save for it. I don't want to risk the Canadian government demanding I pay them taxes by investing any money in Canada- is this a rational fear? Also I don't know anything about investing and saving beyond opening a savings account.

So I'm curious: are you saving for retirement? Please share your story: how much your setting aside and how you're planning for it. Also, if it's not too personal, include your age.

[mistermasan]

fully vested in the "single bullet" retirement plan. thanks for asking.

[Juregen]

saving small amounts into retirement from a young age can really make life easier once you get older.

Try to find information regarding "annuities", and the concept of interest upon interest and you'll understand that 10$ today can be 30$ (in real terms) when you go on a retirement.

[oldfatfarang]

I've been retired for 31 years now. It's taking a long time to eat up all the money I made in my youth. So no - I'm not saving for my retirement - I'm spending my way through it.

In fact, I've told my family that when my time finally comes - they'll have to have a whip round for a cardboard box'.

[robot]

I also would like to get a RRSP going, but share your hesitations about investing in Canada and getting taxed up the rear. We'll just have to hold off for a bit, I guess.

The best thing about RRSPs is that your money is sheltered from tax, but since the tax rate is so low here, does it really matter all that much? I don't know a lot about money, but I figure the savings we're making on income tax helps us more in the long run, assuming you're investing the money in other ways here in Korea.

[sargx]

I'm going to start saving for retirement at 30. Porche first, retirement second. Somewhere in there I will include family, mortgage, kids, graduate degree, and a pirate ship.

[TheChickenLover]

I remember when my dad said to my wife when they first met before we were married.

"When we go, your future will be more than comfortable. Do not worry."

Over 7 figures on my way (hopefully in 20+ years or so)




Inheritance can be a very nice thing.

Chicken

[Buff]

I am. The power of compounding interest is stronger the earlier you start. Right now I've got a Roth IRA, but once I'm working in the US, I'll start contributing to a 401k. David Bach's The Automatic Millionaire is a great read if you're looking to get your finances in order. You might also want to check out the blog, Get Rich Slowly.

Paying off student loans and saving up for school isn't a bad place to start though. Maybe just start putting a smaller percentage away just to get in the habit and then ease yourself up to 10 percent over time.

[cunning_stunt]

The most important aspect of investing money is the time , not the ammount . Just putting away a modest 100$ a month (increasing it slightly over the years to meet inflation) in a hedged fund can bring about immense wealth in 30 years or so . I used to work as a broker and that more people don't do this , or have this information , is amazing to me .

Retirement annuities are good in the sense that you can't touch the money until you are 55 (in my country anyway ) after which you can take a third and recdieve the rest as a month annuity .... The great thing about this type of investment is that you ride the market in the sense that even if share prices are going down , you are buying more shares ....which you benefit from as the market goes up again , and of course , the compounded interest .

Oh god...this is really boring isn't it ?

[CeleryMan]

Cunning Stunt:

Learning how to build assets ain't boring at all, keep that knowledge coming. I'm curious to know how you'd invest $10k in the market?

Are no loads the way to go?

[Ilsanman]

My investment is buying property early. I am also squirreling away a little every so often for my daughter's college fund, but I guess that's only a possibility. If she doesn't go, she won't see that money.

We plan to pay off the mortgage years early and then do something else. Not sure what yet.

Maybe I should step up the savings in the college fund account. There may be more than enough there in 18 years.

[shaunew]

My wife and I put away 500 dollars a month into mutual funds and I invest in stocks and forex. We put 100 dollars away for my sons college fund. We own an apartment.

[drkalbi]

I invest my salary in an index fund here in Korea and we live off of my wife's salary.

[Juregen]

[Zutronius]

Once my student loans are paid off (within two years time), then I will start to save for my future/retirement.