When should you start a retirement fund?

I'm 21, but curious as to when and how I should start a retirement fund? any suggestions?

Updates:
I wanted to start one up when I was 16 and took an econ class, but my mom kinda laughed at me when I came home and told her I wanted to so nothing ever happened about it.. and its been on my mind lately, so I decided id ask, but I've forgotten everything I learned in econ.. so how do I go about it?



I have 10,000 in my regular savings, then I have a savings bond for 3,000 and my regular checking account that has 700 in it.

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Most Helpful Guy

  • Well, if you start saving now, you'll earn interest on that investment now. Which means that the earnings from this year compound in growth each year.

    Balance what you want NOW versus what you're willing to wait for LATER.

    For some, the sacrifice makes them miserable now and they just complain waiting for the future.

    I had waited a few years and then started saving at a slow rate. If I had started right away, then I would have become used to my standard of living.

    My recommendation - don't fall prey to impressing others. You're allowed to have your "toys" just don't let it interfere with your happiness if you regret buying it...

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    • I wanted to start one up when I was 16 and took an econ class, but my mom kinda laughed at me when I came home and told her I wanted to so nothing ever happened about it.. and its been on my mind lately, so I decided id ask, but I've forgotten everything I learned in econ.. so how do I go about it?

    • You have numerous options. I recommend investing in low-risk accounts, but that's just me. Roth IRAs are attractive because of their tax avoidance qualities. The best option may be for you to talk with an insurance agent, but I am bias because I work for a life insurance company (no, I'm not an agent).

      And, good job saving up all of that money. You have me beat!

What Guys Said 4

  • You should have started one when you were 16.

    Start one now, and diversify, because over the course of your life, you're likely to see at least two deep recessions, and probably one company holding your money will go t*ts up and take your savings with them. So don't have all of it in the one place.

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  • age 18! or whenever you start earning more than 2.5 thousand a year, whichever comes later. I think its the Roff IRA that's the really good one for retirement. So basically asap!

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    • if you are earning money, over 2.5 grand a year, then just go to your bank and talk to them about it, they will be able to point you in the right direction, but you do want to say you want an IRA

  • You should start right now. I've read enough about it, if you delay for say.. 7ish years... you'll be missing out on tens or hundreds of thousands later in life. Sooner you get it started... sooner it starts snowballing from interest. If your employer has a plan.. jump on it. Especially if they match your contribution. Don't count on social security... our generation will get f***ed out of it.

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    • You should go to an investment firm like Schwab or Vanguard. Some are online only but others will have a physical location where you can talk to someone. Read up on the requirements on their website. All you need is an initial deposit. That's it. You can setup automatic deductions with your employer. Sounds like you have more than enough $$. Your mom is disappointing. You can do a Roth, or a trditional IRA. Roth you pay taxes now, no tax when you take out. Regular IRA is opposite

  • ...just invest in gold silver and water.

    haven't you read the chinese said the U.S is going to default? doesn't one else care about our country to even know what's going on?

    retirment is going to 75 years of age. yup.

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What Girls Said 7

  • I would say that at the very least start putting away what you can into a separate account.

    One of the wisest things you can do is to have a checking, and at least 2 if not more different savings.

    You find out what you need to live off of for that month, and you put that into your account (plus a little to go out and eat, see a movie or two, etc), put the bulk of the rest into savings, and the rest of it into your "retirement" fund.

    Ultimately when you find a career, or a job that offers a 401K, that's when you can put what you have saved into the 401K they set up for you.

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  • I think the earlier the better. You can probably work it out with your bank, or do it manually and just keep adding to it every month / paycheck / whatever works for you.

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  • Yes, get a financial counselor, but ask around first & get one with a good, trusted reputation from people you & your parents know & trust. Then get an appt. & talk to him/her about your goals & start a Roth IRA. They will help you with the rest. You'll want to keep some in the bank.

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  • As soon as you start working. Right now girl! Seriously. If you do, and you save every week, without fail. You will not regret it. It is the best thing/gift you will ever do for yourself. Do it without fail. Then you will be able to retire at a descent age. Your generation will not have social security, I am sure of that. So you need to save, and save alot. Don't give into your "wants" along the way. Pay yourself first.

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    • should I just set up a separate savings account or what do I do? I haven't had an econ class forever so I don't want to sounds stupid

    • Not stupid at all. It is all confusing. Are you working? Do you have a retirement fund there? Do they have a matching fund? If so, take advantage of that and put in the max, it's tax free. Then if you can, start a Roth IRA. You can do that at an Edward Jones or your bank. Talk to people you know & find out who they use & find someone with a great reputant. Don't go blindly to someone.

    • i work at a pizza place, mr. gattis, I've worked there for a year and a half, but I'm almost done with my dental assisting and hoping to get a job in that field soon.

  • It's never too soon.

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  • the second you get a real job

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  • You should start around the time when you're 18 I think that's the legal age to open up your own IRA. Well I have mine with Schwab, all you do is call them up and open an IRA then I just dumped all my money in their conservative mutual funds.

    you can choose whatever you want, but anyways good luck

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    • get a Ira for dummies book or research it. you can do roth Ira which means you put max 5g in the ira and if it acrues interest you don't pay tax for the interest only for the 5g that year. later when you retire and you have like almost a milliion you can take it out tax free. or you can do regular ira where you don't pay taxes now, later when you take out the million you pay it then. roth is better... if you know what I mean. call charles schwab just go to schwab.com

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