Important life lesson I've learned from working at a bank.

jumpmankb said:
Man this is the most valuable post I've seen on NT in a while.

I know sharing account balances, salary, etc... is frowned upon. But since this is NT and it's TSP account and not my checking account I'll give a personal example of how beneficial this is.

I enrolled when I was 18 and landed my first summer internship. Didn't put any of my paycheck in contributions but still got money somehow. I think I started putting 10% in 2010. But 2010, 2011, and 2012 I was still a summer intern. I'm coming up on my first full year of employment (Sep 8) and have been doing 10% still. In total I've contributed $4,677.98. This is how my balance has grown:

2009: $32.88
2010: $551.81
2011: $1,660.99
2012: $4,410.97
Today: $7,083.23

I love getting my quarterly statements and seeing my money grow :D

I'm expecting to retire with $3M :pimp:
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Where do I sign up? :nerd:
 
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jumpmankb said:
If you work for the government: tsp.gov
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Yeah I'm sure I could sign up if I wanted to. I've been at my job for about two years and they offer 401K and I haven't contributed anything. Probably one the dumbest things I've done in recent times but I've always been ignorant about how it works. I never knew they could be as lucrative as they are. This thread will most definitely cause me to look into it further though. Good looks thread contributors and OP. I needed this kick in the ***** from a financial responsibility standpoint.

Peace...
 
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HTG Designs said:
I think a lot of ppl think there will be a point where they get really rich, and get old and live off that...or maybe its just me .
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A lot of people are naive to the inevitability that they will become old one day and the possibility of hitting the "jackpot" just might not happen. Maybe it's just me when you settle down and those 30's start creeping up on you reality starts to set in more and more.
 
OP, good looking out on this thread. For some reason I can't read the spoilers. My browser at work is acting up but this is good stuff. :smokin
 
Maybe so. I'll admit that the number was just thrown out there, but fairness is not part the equation, my friend.

And if the last six years are an indicator of one's retirement then they should have recouped all of what was lost from the majority of those investments if they stayed on the course. To them dipping into their savings because of lack of liquidity due to joblessness or whatever, then that can be planned for. I never condone that people throw so much money into a retirement plan without having that nice cushion of liquid funds that can be accessed for emergencies or in times you are describing.
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You're not looking at the bigger picture. Maybe this is why some people have the views of the banks and banking in general. Some of those people were older people in their 40s and 50s, that have never found another job that paid them close to what they made or found a job at all due to age discrimination. Its the same people that you're talking about in your OP that are in the bank looking for a personal loan.
 
...if at the end of my career I ain't got a pot to piss in, so be it....

i'll live like they did back in the day when nobody had money.... move to the middle of nowhere and live that small town life where listening to the radio and sharing stories with the locals is the highlight of my day....

i will however do my best to prepare my kids for the future... the choices i made don't have to be the ones they make... learn from my mistakes, let me take one for the team so they can better themselves and live the life they eventually dream to live
 
651akathePaul said:
Dathbgboy said:
Man, I want to start an IRA bad but can't afford to. I can barely afford to pay my rent. Been looking for a better job for over a year and have yet to find one. I'm 3yrs away from 30 with nothin to show for it besides debt. Feels bad man :smh:
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Well, the good thing is that it's never too late to start one so even though you're 27, you still have time. It's the combination of saying that with continual inaction or lack of awareness that's the problem. 30 isn't too old to build a good retirement, bro...So long as your conscience of the fact that it's important to your future then that's a big step in itself, I believe. Priorities are just that and you have yours...I wouldn't be panicking much right now, rather just trying to get to place where building for retirement is more comfortable for me to afford. You'll be aight. :pimp:
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Yea I feel u, it's just getting to the financial position where I can start one which is the obstacle. The way the job market is, finding that job that pays just a little more than what u need for bills is getting harder and harder to come by.
 
jumpmankb said:
Man this is the most valuable post I've seen on NT in a while.

I know sharing account balances, salary, etc... is frowned upon. But since this is NT and it's TSP account and not my checking account I'll give a personal example of how beneficial this is.

I enrolled when I was 18 and landed my first summer internship. Didn't put any of my paycheck in contributions but still got money somehow. I think I started putting 10% in 2010. But 2010, 2011, and 2012 I was still a summer intern. I'm coming up on my first full year of employment (Sep
glasses.gif
and have been doing 10% still. In total I've contributed $4,677.98. This is how my balance has grown:

2009: $32.88
2010: $551.81
2011: $1,660.99
2012: $4,410.97
Today: $7,083.23

I love getting my quarterly statements and seeing my money grow
happy.gif


I'm expecting to retire with $3M
pimp.gif
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pimp.gif
pimp.gif
 
jsfLip said:
OP, how'd you start a career in banking?  After getting a decent paying job after college (major: Psych), I became heavily interested in personal finance and becoming a Certified Financial Adviser/Planner crossed my mind.
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Much the same way you started your interest. After I graduated with a business degree, I gave myself the whole summer prior to my best friends wedding in August to just chill, get in shape (wedding was in Hawai'i) and do whatever it is I wanted. I found myself starting to watch a lot of CNBC and getting crazy interested in the stock market and investing. I would read a few hours a day on the subject.

When fun time was over, I decided to interview with some investment firms based in Seattle or Bellevue here in Washington, but didn't really like the environment it felt it would be. I still pursued it until they told me that to get my licensing done, I have to put up the money and they'll reimburse only 80% of it. I said "nope!" I needed the job to get the money and not spending money to get the job.

My friend had a brilliant idea about starting at the bottom of a bank as a teller and working my way up. I warmed to the idea because I didn't want to do that, but after a few years I got my licensing done...Not only did the bank pay, but I got a hefty bonus for passing. Now I'm in hyperdrive trying to climb the ladder and build that impressive resume so I can hop careers and do things I've always wanted...Teach, coach, etc.
 
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jumpmankb said:
Man this is the most valuable post I've seen on NT in a while.

I know sharing account balances, salary, etc... is frowned upon. But since this is NT and it's TSP account and not my checking account I'll give a personal example of how beneficial this is.

I enrolled when I was 18 and landed my first summer internship. Didn't put any of my paycheck in contributions but still got money somehow. I think I started putting 10% in 2010. But 2010, 2011, and 2012 I was still a summer intern. I'm coming up on my first full year of employment (Sep 8) and have been doing 10% still. In total I've contributed $4,677.98. This is how my balance has grown:

2009: $32.88
2010: $551.81
2011: $1,660.99
2012: $4,410.97
Today: $7,083.23

I love getting my quarterly statements and seeing my money grow :D

I'm expecting to retire with $3M :pimp:
Click to expand...

Thanks. I think it's a very valuable lesson for those willing to listen. Thanks for sharing the numbers too. When you start early like that and don't miss a penny or realize what's even going on and then you receive a statement showing all that growth you really get sucked in to investing, which makes it that much more beneficial. You're well on your way though. :pimp:
 
Antidope said:
Cosigning on all of this. I work in financial services/Investments and its crazy when you see some people who are in their 80s who are set just becuase they made their periodic contributions. I also agree with the 10% contribution of your paycheck. Thats what I do into my 401k and the difference between the 6% match that my firm offers and the 10% that I'm electing to put in is negligible to me. Its money that I would have wasted on BS that will serve me better in the long run. It also makes me want to learn more about the securities market. I saw a guy who bought $10,000 of microsoft stock when they had their IPO in the 80s and with all the stock splits and rise in value he now has 28 million dollars worth.
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Exactly.
 
frshstunna said:
I work with the Aging department in my area and its truly sad and amazing some of the stories and situations we deal with...we got people that worked for 40+ years calling for help just to buy groceries or cant afford a cab ride to the doctors smh
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It's truly amazing. And seeing that stuff everyday really makes you think. These folks are broken down and like you said, can't afford to get to the doctors let alone get the care they need. Most have moved back in with their kids or in a home. That's no way I want to live.
 
Unfortunately the 401k retirement system is the biggest scam going. What happens when the bottom falls out and you've spent your whole life putting all your money in the market? The vast majority of americans retirement depends on a bunch of CEO's with no cards in the game. The companies are public and the executives just milk what they can for personal gain.

Accumulate real wealth, not pieces of speculative paper. Hard assets and cash flow. You want to be lazy and let these banksters facilitate your retirement for you? Good luck with that.
 
Al Audi said:
Somebody told me life is pointless after the age of 55 an he actually wants to die in his 50s. Then he asked me......think about it what do you have forward to look at after 55 an I was like........damn.......
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Crazy thinking.  We as humans are evolving to live into our 90s, and our generation will likely be able to make low 100s.  Just think, 70 years ago Penicillin was invented and revolutionized how we fight infection and illness.  Start saving now guys, put away as much as you can.  My mentor in medical school told me to save as much money as you can when you are young, get to a million dollars and you can retire anywhere in the world and live comfortably.  Retirement by age 50 should be all of our goals!
 
Rell826 said:
Maybe so. I'll admit that the number was just thrown out there, but fairness is not part the equation, my friend.

And if the last six years are an indicator of one's retirement then they should have recouped all of what was lost from the majority of those investments if they stayed on the course. To them dipping into their savings because of lack of liquidity due to joblessness or whatever, then that can be planned for. I never condone that people throw so much money into a retirement plan without having that nice cushion of liquid funds that can be accessed for emergencies or in times you are describing.
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You're not looking at the bigger picture. Maybe this is why some people have the views of the banks and banking in general. Some of those people were older people in their 40s and 50s, that have never found another job that paid them close to what they made or found a job at all due to age discrimination. Its the same people that you're talking about in your OP that are in the bank looking for a personal loan.
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Not saying that '07 and '08 didn't do it's work on people, but if they were in their 40's and 50's then a lack of planning, understanding or knowledge played a part. I am looking at the big picture, man....They didn't. My Mom was part of that. Fortunately she was able to keep her job and her investments recovered, but even if she lost her job then she wouldn't be relying on getting to the age where she can collect SS to survive. Those people are begging and if they did things right (at the age that NT averages) then a buffer could have been built to build time to find another job. Too many excuses, but I'm not a prick. The people it really hurt were those just about to retire who were in their 60's or so.
 
what about index funds opposed to 401k's...? do banks offer those or should i have to go somewhere else...?
 
FrankMatthews said:
Unfortunately the 401k retirement system is the biggest scam going. What happens when the bottom falls out and you've spent your whole life putting all your money in the market? The vast majority of americans retirement depends on a bunch of CEO's with no cards in the game. The companies are public and the executives just milk what they can for personal gain.

Accumulate real wealth, not pieces of speculative paper. Hard assets and cash flow. You want to be lazy and let these banksters facilitate your retirement for you? Good luck with that.
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The market has more than a good enough track record over its existence to dispute that line of thinking that the market will wash away everything. Just don't run when it gets wild and go back in when it calms back down.

Those involve in creating the investments definitely DO have cards in the game. They're trying to make money too. They want your investments to go up because that's how they get paid.

And yes...Hard assets and cash flow is a great way, but some may not have the means to acquire those so readily. Turning to a retirement account (not just 401(k)'s here) is a very reliable way to save for your later years. History proves it.
 
The system isn't working for employees -- or employers
The aggregate retirement-income deficit for all baby boomers and Gen Xers -- that is, the amount by which their savings, plus Social Security, falls short of what they'll need -- is $4.3 trillion, according to the Employee Benefit Research Institute. Clearly, folks aren't setting aside enough for their post-work lives.

The average employee contributes 6.4% of his or her paycheck to a 401k, according to the Plan Sponsor Council of America. Advisers recommend 10% as a baseline minimum, and for those who start late (in their 40s or even 50s), 15%.

The problem's not just one for workers, though. Following the recent financial crisis, companies have noticed a rise in so-called "hidden pensioners," Credico says. These are individuals who can't afford to retire, but they are less than dedicated on the job. Plenty of older folks enjoy the stimulation of work, but hidden pensioners punch the clock for the paycheck alone, and their performance suffers for it.

The good news is that these laggards are spurring companies to design more effective retirement plans, Credico says. A self-serving motivation, for sure, but at least it's ultimately to participants' benefit.
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This is a snippet from MSN Money that talks about 401(k)'s not always being as advertised, but you'll find here that a lot of the responsibility is placed on the individual making conscience efforts and decisions.

Again, I work at a bank...I'm VERY confident with my employers 401(k) plan. That doesn't mean you have to have the same automatic confidence in your employer sponsored plan. But again, this isn't stricly about 401(k)'s. It's about retirement accounts. IRA's are part of that. You can do that on your own or go to place that can put one together for you. That just may be better than an employer sponsored program. Do the minimum with your employer to get the match, but go elsewhere with the other 10% or so.
 
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For you young'ns

Storing some old Jays in your closet does not count as saving up.

Great post OP. A lot of people need to get educated on how to save money. Majority of people are thinking about the present and not the future and its sad.
 
651akathePaul said:
The market has more than a good enough track record over its existence to dispute that line of thinking that the market will wash away everything. Just don't run when it gets wild and go back in when it calms back down.

Those involve in creating the investments definitely DO have cards in the game. They're trying to make money too. They want your investments to go up because that's how they get paid.

And yes...Hard assets and cash flow is a great way, but some may not have the means to acquire those so readily. Turning to a retirement account (not just 401(k)'s here) is a very reliable way to save for your later years. History proves it.
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If you are speaking of the US market then I would say it hasn't existed long enough to rely on it's track record, especially in it's current form with every joe blow trying to trade stocks online, the market is much more speculative and therefore unstable, and thats not even factoring the instability of the economy as a whole. If we are talking about all financial markets throughout history I think the track record shows that EVERYTHING gets washed out completely at some point. The whole mindset of "the market always goes up in the long run" is what is going to destroy alot of people. Nothing always goes up forever. Simply put, the compounding interest equation in which our entire economic system depends in exponential, while people and resources are finite. It's unsustainable, period.

The portfolio managers may or may not have a cards in the game (some take percentage of AUM). I am speaking of the executives at the companies these managers are investing in. They don't have significant ownership, they take 6-7 figure salaries plus bonuses and expenses, if the company goes bankrupt they get hired somewhere else. The incentive is for them to meet or beat the quarterly numbers while they are employed there. There is virtually no incentive for a CEO to position a public company to be profitable/succesfull 20-30 years down the line when you are ready to retire. The stock market is a scam and it allows people like Zuckerberg to cash out of companies at values they would have never received privately at the expense of rookie investors and asset managers spending mom and pops money. The 401k performance as a function of claims on company's incomes is an illusion. It's a ponzi pyramid at this point.
 
FrankMatthews said:
Unfortunately the 401k retirement system is the biggest scam going. What happens when the bottom falls out and you've spent your whole life putting all your money in the market? The vast majority of americans retirement depends on a bunch of CEO's with no cards in the game. The companies are public and the executives just milk what they can for personal gain.

Accumulate real wealth, not pieces of speculative paper. Hard assets and cash flow. You want to be lazy and let these banksters facilitate your retirement for you? Good luck with that.
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this guy gets it...

Yeah, its cool to have that retirement plan going...

But tangible assets that appreciate in value will do you better in the long run.

Liquidity might not be as high... But safeness of being able to be recouped is there.

May we highlight some of the past scandals involving retirement.?

Not to crap on OP... I'm just adding that you should look at assets as well as money plans.
 
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