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My Gen Z cousin called a $6000 Roth IRA max out "rich people stuff" and I didn't know what to say
I was at a family BBQ in Phoenix last month and my 23 year old cousin told me she thinks saving for retirement is a scam made up by boomers to sell financial advisor fees. I said I put in $583 a month to max out my IRA, and she said that's "rich people stuff" because who has an extra $600 lying around. Meanwhile she pays $89 a month for a gym she goes to twice, plus DoorDash four nights a week. I'm not saying my generation is perfect either, but I really want to know where this idea came from that investing is only for rich people, because it seems like a lot of younger folks believe it.
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lindab4920d ago
My sister's kid told me the same thing last Thanksgiving, right after he asked me to spot him $40 for a concert ticket. I maxed out my IRA for the first time at 34 and had to eat a lot of rice and beans to get there, so it's not like I was born with $600 just floating around. The gym and DoorDash math is what gets me, because $89 plus four delivery nights is way more than my monthly IRA hit. Young folks have been told over and over that the game is rigged, and honestly a lot of it is, but that doesn't mean you just hand the game your money at 23 and hope for the best later. I just wish someone had shown me a compound interest calculator at her age instead of a sales pitch.
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holly_henderson8620d ago
Read a piece on NPR last month saying the average American spends about $1,200 a year on subscriptions, which is basically a Roth IRA contribution just sitting there. Kid's not broke, she's just paying for stuff she forgot she signed up for.
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