Bitcoin (cryptocurrency)

Paladin said:
I took a lot out and gave my two sons and my daughter-in-law £250 each so that they could have a dabble. They were all interested in the stock markets, and hopefully they won't lose any of their own money.
Click to expand...
Financial literacy is more important for most people today than calculus, but we pretend it is not part of the required education for a well-rounded adult.

Ever since my children earned their first dollar, they have been taught to contribute the maximum possible to their retirement accounts (401K & IRA). While they’re young and at probably the lowest tax rates they will ever experience, it is even more important to get that money in AFTER taxes, so it grows tax free FOREVER!

At 22 & 24, they each already have more money socked away than my wife and I did by age 40...with 20 “extra” years of growth.

An interesting stat I read is that if you fully fund an IRA from age 20 to 30, under normal conditions you will end up in the same place as if you STARTED at age 30 and contributed until retirement at age 65!

Albert Einstein is reputed to have said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.”

To me, and for most people, that’s just as, if not more, important as Pythagoras Theorem!

Compound Interest Calculator

This free calculator also has links explaining the compound interest formula.
www.moneychimp.com

Do the maths! ;-)
 
ChicagoBlue said:
Financial literacy is more important for most people today than calculus, but we pretend it is not part of the required education for a well-rounded adult.

Ever since my children earned their first dollar, they have been taught to contribute the maximum possible to their retirement accounts (401K & IRA). While they’re young and at probably the lowest tax rates they will ever experience, it is even more important to get that money in AFTER taxes, so it grows tax free FOREVER!

At 22 & 24, they each already have more money socked away than my wife and I did by age 40...with 20 “extra” years of growth.

An interesting stat I read is that if you fully fund an IRA from age 20 to 30, under normal conditions you will end up in the same place as if you STARTED at age 30 and contributed until retirement at age 65!

Albert Einstein is reputed to have said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.”

To me, and for most people, that’s just as, if not more, important as Pythagoras Theorem!

Compound Interest Calculator

This free calculator also has links explaining the compound interest formula.
www.moneychimp.com

Do the maths! ;-)
Click to expand...
A friend's dad made my friend take out an endowment policy when he first started work, years before he bought his first house. When he bought his house, he didn't have long until the endowment matured, and he was a house owner, mortgage-free before I had even left home.

He went on to become a Financial Advisor.
 
Seems to be going up since Elon Musk and Tesla bought in. Anyone have any good fortunes with investing in BTC lately?
 
ChicagoBlue said:
Financial literacy is more important for most people today than calculus, but we pretend it is not part of the required education for a well-rounded adult.

Ever since my children earned their first dollar, they have been taught to contribute the maximum possible to their retirement accounts (401K & IRA). While they’re young and at probably the lowest tax rates they will ever experience, it is even more important to get that money in AFTER taxes, so it grows tax free FOREVER!

At 22 & 24, they each already have more money socked away than my wife and I did by age 40...with 20 “extra” years of growth.

An interesting stat I read is that if you fully fund an IRA from age 20 to 30, under normal conditions you will end up in the same place as if you STARTED at age 30 and contributed until retirement at age 65!

Albert Einstein is reputed to have said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.”

To me, and for most people, that’s just as, if not more, important as Pythagoras Theorem!

Compound Interest Calculator

This free calculator also has links explaining the compound interest formula.
www.moneychimp.com

Do the maths! ;-)
Click to expand...

Apologies for my lack of knowledge but what is an IRA account and why would you not use a pension fund?
 
True_Blue69 said:
Apologies for my lack of knowledge but what is an IRA account and why would you not use a pension fund?
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IRA = Individual Retirement Account. Can put between £5-6K per year into a retirement account either tax paid, with no taxes due on gains, or tax free with withdrawals taxed in retirement (when your taxes are often lower).

In the US, Defined Benefit Plans are almost extinct and we have Defined Contribution Plans instead. The former is based on some final earnings/tenure calculation while the latter is an “as you go” contribution account that grows OUTSIDE YOUR EMPLOYER during your tenure, and is often % of your income, upto certain limits.

You can have both counts and they both have income limits at which you can no longer contribute.


2021 Retirement Limits:
(Under age 50/over age 50)

401(k) = $19,500/26,000
Total tax-deferred Limit = $58,000/64,500

IRA = $6,000/7,000

So, one could put up to $64,000/71,500 per year into retirement accounts.

You can also add a Spousal IRA for a spouse that does not work for a total of $78,500 per year.

I hope that helps, and doesn’t provide further confusion.

P.S. I hold my GBTC in my IRA account, which IS a retirement account. I can pass that money on to heirs WITHOUT TAX upon death, so I can let it ride for however long I want without any concern for Capital Gains.
 
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ChicagoBlue said:
Financial literacy is more important for most people today than calculus, but we pretend it is not part of the required education for a well-rounded adult.

Ever since my children earned their first dollar, they have been taught to contribute the maximum possible to their retirement accounts (401K & IRA). While they’re young and at probably the lowest tax rates they will ever experience, it is even more important to get that money in AFTER taxes, so it grows tax free FOREVER!

At 22 & 24, they each already have more money socked away than my wife and I did by age 40...with 20 “extra” years of growth.

An interesting stat I read is that if you fully fund an IRA from age 20 to 30, under normal conditions you will end up in the same place as if you STARTED at age 30 and contributed until retirement at age 65!

Albert Einstein is reputed to have said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.”

To me, and for most people, that’s just as, if not more, important as Pythagoras Theorem!

Compound Interest Calculator

This free calculator also has links explaining the compound interest formula.
www.moneychimp.com

Do the maths! ;-)
Click to expand...
Compound interest was covered in 2nd year when I was at school and Pythagoras in 3rd year (8&9 equivalent now).

Maybe it was more more important then with them being a lot higher. I updated children's school bank accounts by calculator and pen when they sent them to the bank in the 80s, what a shit task and boring environment that was, put me off banks for life.
 
Corky said:
Compound interest was covered in 2nd year when I was at school and Pythagoras in 3rd year (8&9 equivalent now).

Maybe it was more more important then with them being a lot higher. I updated children's school bank accounts by calculator and pen when they sent them to the bank in the 80s, what a shit task and boring environment that was, put me off banks for life.
Click to expand...
I’m talking about more than just what Compound Interest is, but I understand your point about the atmosphere and experience of using a bank back in the day.

A finance class could look at rent vs buy decisions, and the outsized costs associated with each, depending upon whether a TV or a house. Car leases and how to determine if it makes sense over buying. The home buying process, the real cost of credit card use, wills, trusts, stocks, bonds, different kinds of savings plans, including the different retirement options, etc, etc, etc.

It’s a twofer...teaching maths AND life skills that everyone needs (and uses) every day when it comes to their hard earned readies.

If only I was King for a day....! :-)
 
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