[Nickshu]

Originally Posted by mreid

Three simple rules:

1. Plan - you need to plan your retirement before you are thirty. Financial readiness is the number one priority and using your money to make more as early as possible is critical. Pick your investment strategy and stick to it. It's very simple: spend less than you make.

2. Consumption - What do you need vs. what do you want? A great home is far more important than a great car, boat, etc. If in doubt, see rule #1 above.

3. Location - Plan to live in an area that supports your consumption choices. For example, Texas has a tax base more driven by consumption. Taxes are levied on the value of your home and how much you spend on products and services. While New York and California also tax all of your income in a variety of ways. However, the politics are at opposite ends and you may have a personal "need" to live in a particular political climate. If in doubt, see rule #1.

I guess there is really only one rule: start as early as possible to spend less than you make and invest the difference for the long term with an eye on what you need in retirement.

Motion, I don't think there are any real "secrets". The important points are pretty much summed up by MReid above. I would only add that the market must return what you anticipate. My retirement plan is based on a 6% return, which is conservative and more realistic than 8-10% which some people use to plan.