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"...Also a home is a very poor investment if you don't pay cash for it."
Generally, I advise younger people to start saving for retirement as soon as they have a job. Today, pensions are gone and have been replaced with a 401K.
Regarding the purchase of a home, remember that one has to pay rent if one does not buy, And rents increase and that is money one never sees again. With a home one builds equity.
Replies to ""...Also a home is a very poor investment if you don't pay cash for it." Generally,..."
@vic83. So true. The vast majority of us don’t have cash for a big purchase like a house. A carefully chosen house - with manageable mortgage payments to avoid stress and be able to still enjoy life - is a good investment IF possible. If at all feasible paying for a mortgage over dead rent grows a sellable asset.
So important to also build a separate retirement cash flow as tax effectively and as low risk as sensibly possible. Big gains are so attractive but come with big risks.
I’m so lucky that by the time I was forced by ill health to retire early I was totally debt free, had a decent self funded pension and an emergency cash fund. Thanks to an old fashioned father and up bringing!! Not easy and took dedication to achieve but luckily achieved before I knew I was very ill.
I don’t live expansively - don’t wear high end brands, don’t drive a luxury car etc (in fact my Mazda 6 is 18 years old and looks and is going great thanks to being able to keep servicing up to date).
It’s all a question of prioritising and keeping an eye on what the plan is when a wage is no longer coming in
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Buying a house was the best investment I have made. I made sure that the mortgage was paid off before I retired and now I have no house payments or rent to worry about.