Yes, exactly. I don't think a new grad should be taking their $10k savings and putting it into a vanguard. They're at a unique point in their lives where they can take a risk and start a company. It'll probably fail, but even if it does, there's lessons that usually come with that that's way more valuable than the $10k lost. Also, even if it's not a smash success, there's plenty of businesses you could start that might bring in a nice side income for many years while you go do other things such as get a real job. That's also much more valuable than 5% / year off of a vanguard.
Completey disagree. If you're a new grad, the most beneficial thing is to get your feet wet - both technically and professionally in a company with a wide range of issues, while making a decent salary and investing it.
You could learn the ropes while starting your own company or at some huge conglomerate. The difference is that you're probably not able to put away much cash while doing your own thing.
Anyway, the $10K investment at 23 is kind of a red herring. The true question I've had to ask myself the last decade, is whether it's better to take more risky start-up jobs for equity or stick with safer enterprise jobs at a good salary, but with less chance to start something myself and possibly hit the jackpot.
So in my late 30s, I haven't had much start-up experience, and uncool Java and Spring are my bread and butter. But after a decade of making over six figures annually, investing most of it, living frugally, and letting exponential growth do its thing, by the time I'm 40, I'll be well placed financially to take the same risks as any 25 year old. But I'll have plenty of capital (via exponential growth) and experience. And probably better odds of creating something that at least breaks even and pays the bills.
There is many paths to the same place! Don’t be so narrow minded in thinking yours is the only one or the better one...everybody needs different things in life!
I went straight into startups after school...and boy was it though! Even when we made money we would invest it straight back into the business...I lived mostly poor all my twenties...no car, vacations, apartment (I lived at the office most of those years), etc.
What I gained was invaluable expierence and network...way beyond what you can learn in a very well defined (and confined) role at a established company.
Now at age 37 I work as a lead at on of the big 3, responsible for billions of dollars. Pulling in a high 6 figures annual compensation and also well on my way to be able to retire at 40. And I just started saving money 2-3 years ago for the first time in my life.
I have a family, own a house, go surfing in summer and snowboarding in the winter...I picked all this up in the last 6 years...I guess you could say my life plan was more of a exponential one...where the first 10 years didn’t seem to lead anywhere worth going...I always believed that doing good work would eventually pay off...and eventually it did and the grind payed off and the exponential curve started.
I be honest, I needed it that way...the linear approach to life has never been my thing...but that’s just me...people should be true to themselves when it comes to life planning!
But, the fact that you work at one of the big 3, responsible for billions of dollars, means you probably graduated from a top school, live in the Bay area, are in the top 3-4% of intelligence and skills, had some luck, etc.
Most of us here, statistically, are not going to have these same traits.
Take a risk, but don't end up at 40 without something saved up for a rainy day. Start-ups fail more than they succeed, and we're both lucky - you in the right place at the right time (tech bubble, SV, etc) and me having invested during one of the largest bull markets in history.
So we're probably both preaching BS that may not apply going forward.
Actually a public school dropout...but other than that you are of course right...I wasn’t trying to say “do it like I did”...I was trying to say: do what’s right for you and your situation!
>whether it's better to take more risky start-up jobs for equity or stick with safer enterprise jobs at a good salary, but with less chance to start something myself and possibly hit the jackpot.
You're better off taking the high salary at Facebook, Amazon, Microsoft, Google etc..
Compound interest. Saving in your 20s is enormously more powerful than saving in your 30s. Losing the same amount of cash due to a poor startup is worse in your 20s than in your 30s.
