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Comment by natrius | Hacker News Reader

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.

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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.

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