23-Year-Old Questions Retirement Saving as Mortgage Rates Creep Back Toward 7%
Updated
Updated · Slate · Sep 21
23-Year-Old Questions Retirement Saving as Mortgage Rates Creep Back Toward 7%
2 articles · Updated · Slate · Sep 21
Summary
A 23-year-old with strong workplace retirement benefits asked whether saving is worth it after older co-workers said they still may not be able to retire.
40 to 50 years of compounding gives the worker a far different outlook, the advice column said, arguing the co-workers may be dealing with debt, family costs or poor budgeting.
7% mortgage rates and high home prices make buying tough, but the response still urged long-term planning—save for a down payment that can be as low as 3% and buy only when staying put 5 to 10 years.
Health care came before discretionary spending in the advice: use employer insurance for an annual checkup, even with a co-pay, while continuing to save because money preserves future options.