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Yeah, I don't do 401k. Nor am I depending on social security. I plan to start my own business(es) and get wealthy that way. I don't care if it's "risky" to start a business. That's what I choose to do. Also, the more cash/liquid savings you have, the more once-of-a-lifetime invest opportunities you can seize. I've gleaned this info from existing millionaires such as Mark Cuban, the book "The Millionaire Next Door," and others.

So... you aren't saving for retirement at all? If so, relying on the success of a future business as your retirement fund isn't smart. If you're still saving elsewhere, that could be a sound plan as long as you don't sink it all into a business that fails.

If that's your plan, then you are depending on Social Security or whatever social programs are available when you retire.

I am saving, but keeping it liquid. I save about 50% of my net income--which, as a mid-level software developer, is good money. Therefore, I can invest in myself now (or soon)--for example, starting a business. I'm not sure how much of my savings I'll need to start a business. But I'm a pretty conservative spender, so I'm not worried.

I'm going to make it happen. Somehow.

I understand that everyone's financial situation and aspirations are different. YMMV.

This is the strategy I'll be taking, although I'm 20 and have little to save as is. If there's a bout of deflation or price/asset decline, keeping money in savings as opposed to 401(k) assets could earn a much better real return. The only reason people don't normally think of this is because this normally doesn't occur.

But there are significant tax savings when using a 401K or IRA, which combined with the long term makes it quite unlikely that savings will out perform.

Plus, you can probably put currency funds into a retirement account. I think that would function the same as holding cash, but I haven't completely thought through it.

Betting on deflation as the path to riches seems to be hardly a prudent strategy, let alone one to bet your retirement on. Yes I 'could' get a great return on investment if I buy that painting in the garage sale of my neighbor and it turns out to be a Monet, that doesn't make it a wise investment.

I actually commend him for taking on that risk. One of the things that saddens me about society today is that we have become totally risk-averse.

Hey, I know you!

Seriously though, when are you going to start a company? There's at least 4 of us (Kevin M, John H, Dave N, me) working on 3 startups in SF. Join us!

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