When should I start saving for retirement?

When should I start saving / investing for my retirement?

Start as early as you can and you'll want to kiss the younger you when you reach retirement age. I know you (and everyone else this age) think they are not making enough money to start saving and are waiting for you to settle into your career and make better money. Don't postpone it. Save some money with every paycheck, even if it's only $ 50.

Trust me, as little as you make now, you will likely have more disposable income than you will if you make twice as much. Your lifestyle always seems to keep pace with your income, and you will likely ALWAYS feel like you run out of money to save.

The longer you wait, the more you have to put away to make up for the lost time you could have made as shown in this table (assuming an average annual profit of 9.4 percent, which is the average return on the stock market of 1926- 2010).

I also suggest reading this article when it is explained in more detail: Who Wants to Be a Millionaire?


$ 2000 for 6 years in Roth IRA == $ 1 million at 65! Woah!

JohnFx ♦

Exactly. Time is your friend, my friend. Don't waste it. Another factor to consider is that $ 1 million in 40 years won't seem nearly as much as it does today. Do you know how grandpa always says that a burger used to cost nickel? You will sound just as crazy when you say it costs $ 5 to your grandchildren who pay $ 50

Jim G.

: That is an exaggeration.