So much cynicism in these comments. As a 27-year-old, I found myself nodding at almost everything stated by the author. Perhaps I don't fall into the same category as most other HNers.
1. Stay married to the same person.
I married my wife right out of college (age 22) and we were and still are serious about the "til death do us part" bit. We realize that a strong marriage is something that takes hard work on a daily basis. Are there cases where this just isn't the best route to take? Absolutely (e.g. abusive relationships, unfaithful relationships, etc).
2. If you’re going to have children do it before 35.
Our daughter is now 14 months old and we have a 529 set up for her. I'll definitely be pushing for an in-state public school.
3. Choose a career you can imagine doing for 35 years and stick with it.
I love being a software engineer and I can't imagine working at a different company than I do now. I'm constantly challenged and learning new things while being part of an amazing team.
4. Secure a job with a defined benefit pension, ideally one with a union that protects you from the wiles of a topsy-turvy job market.
This is where I diverge, albeit not necessarily by choice. I contribute to my 401k which my employer contributes a generous amount. I am not a member of a union.
5. Find a financial advisor you can trust.
This is one area where I've procrastinated. I've read a lot of personal finance books and blogs, so I'm not entirely ignorant, but I do need to find a competent professional to look after my finances.
6. Buy the best house you can afford.
I didn't quite follow this advice, as we decided to buy a house below our means, but it is in a great area, brand new and plenty of space (2100 sqft). I don't view buying a home as some sort of investment (i.e. I went in to it not expecting any significant return), but we bought towards the bottom of the market with an amazing interest rate. On top of that, we're paying almost the same exact monthly payment as we did on our apartment that was 1200sqft while putting equity into something. It does help that we're out in the burbs.
7. Years before you retire, develop long-standing interests that are not outrageously costly and that don’t depend on your job or your family.
I think this is great advice.
Many comments are saying this results in a really boring life during peak years, but I don't see that. We eat out at great restaurants, have travelled internationally, are involved in our community, actively engage in hobbies individually and together, spends a large amount of time with friends and family, etc. I suppose it's just a matter of different strokes...
The advice is terrible. Most of it is a function of the luck and circumstances of his own life and requires you predict the future.
1. "Marry someone you'll never want to divorce." No shit.
2. "Plan your child rearing years around how long you expect to live." No idea how long I'll live.
3. "Choose a career that will remain lucrative and relevant." Most of our "careers" are going to be eaten by software.
4. "Get a pension plan that will never become insolvent." Good luck.
5. "Find a trustworthy and competent person in an area you have no expertise in, and hand your future to them." Impossible and irresponsible.
6. "Buy a house where there will be no real estate market crash." On average real estate prices track inflation, the last 30 years is an anomaly.
7. "Rule out any hobbies that will be expensive in 40 years." Getting into computers as a hobby 40 years ago would have seemed insanely expensive. Like robotics or 3d printing today.
As you can tell unless you can predict the future most of the advice here is empty and hinges on the past being just like the future, and not anyone's past but this guy's past.
> This is one area where I've procrastinated. I've read a lot of personal finance books and blogs, so I'm not entirely ignorant, but I do need to find a competent professional to look after my finances.
The problem is most financial advisors are just salespeople. They don't have your best interests at stake, they're just looking to get you into whatever product gets them the best commission.
Personal finance is not complicated, at least for those of us of average means. Max out your tax-advantaged accounts and keep costs low. Invest early, invest often and stay the course through a crisis.
A financial advisor will load you up with mutual funds charging >1% annual expenses. Vanguard index funds are as low as 0.05% and historically are more likely to outperform a given actively-managed mutual fund. Over your lifetime, that's a difference of hundreds of thousands of dollars in costs.
John Bogle, founder of Vanguard, says "buy the entire market and hold it forever." You don't need an advisor to do that.
1. Stay married to the same person.
I married my wife right out of college (age 22) and we were and still are serious about the "til death do us part" bit. We realize that a strong marriage is something that takes hard work on a daily basis. Are there cases where this just isn't the best route to take? Absolutely (e.g. abusive relationships, unfaithful relationships, etc).
2. If you’re going to have children do it before 35.
Our daughter is now 14 months old and we have a 529 set up for her. I'll definitely be pushing for an in-state public school.
3. Choose a career you can imagine doing for 35 years and stick with it.
I love being a software engineer and I can't imagine working at a different company than I do now. I'm constantly challenged and learning new things while being part of an amazing team.
4. Secure a job with a defined benefit pension, ideally one with a union that protects you from the wiles of a topsy-turvy job market.
This is where I diverge, albeit not necessarily by choice. I contribute to my 401k which my employer contributes a generous amount. I am not a member of a union.
5. Find a financial advisor you can trust.
This is one area where I've procrastinated. I've read a lot of personal finance books and blogs, so I'm not entirely ignorant, but I do need to find a competent professional to look after my finances.
6. Buy the best house you can afford.
I didn't quite follow this advice, as we decided to buy a house below our means, but it is in a great area, brand new and plenty of space (2100 sqft). I don't view buying a home as some sort of investment (i.e. I went in to it not expecting any significant return), but we bought towards the bottom of the market with an amazing interest rate. On top of that, we're paying almost the same exact monthly payment as we did on our apartment that was 1200sqft while putting equity into something. It does help that we're out in the burbs.
7. Years before you retire, develop long-standing interests that are not outrageously costly and that don’t depend on your job or your family.
I think this is great advice.
Many comments are saying this results in a really boring life during peak years, but I don't see that. We eat out at great restaurants, have travelled internationally, are involved in our community, actively engage in hobbies individually and together, spends a large amount of time with friends and family, etc. I suppose it's just a matter of different strokes...