i am 19 years old would it be to my advantage to start retirement savings now?

Question

why or why not?

Answer 1

Yes now is the time to start, you are never too young. Based on the way interest compounds and how money works your money will work best for you if you begin now, even if it's as little as a few dollars a week. It will also help to serve as a safety net in case something in your financial pictures change over the years.
Some day other things may get in the way of saving so whenever you can you should take the chance to save. Plus getting into the habit of saving now will create life long good habits for the future.

That said be careful where you decide to put your money, there are people here who will desend on you and your money like vultures and may not have your best interest at heart.

Make sure wherever you decide to invest your money you read the prospectus carefully, choose wisely, look into the background of the financial instution. I would suggest going with a company or financial instution with a reputable long standing reputation, not a fly by night company. Check to insure they are FDIC insured if it's a bank. Also check with the FTC to ensure they are who they say they are. It also never hurts to call your state attorney's office if you are unsure. You want to ensure you are truly saving for your future and not lining someone else's pocket. Check into the fees involved and penalties for early withdrawl. One of the best companies we personally use is Fidelity Investments, we like that there fees are low. But there are many out there. (btw we are NOT affiliated with them in anyway so this is not SPAM).

If you start saving now you will need to save less over the long run because you money will be working harder for you.

Answer 2

By retirement savings, I assume you mean in tax-advantaged retirement accounts. These lock up your savings until at least age 59.5 in exchange for giving you the chance to reinvest capital gains without them being taxed. This "compounds compounding," and gives you the best possible growth for the long-term. Assuming you are in a low tax bracket now, like most 19-year-olds, but that you have some earned income, you would want to invest up to the maximum possible in a Roth IRA, which means you pay taxes up front and then your money grows tax-free and is not taxed when you finally withdraw it (at which point chances are you will be in a higher tax bracket).

The reason NOT to invest in a retirement account at this stage in your life is if there's a good chance you would need to access your savings earlier -- e.g., for education, buying a car or house, starting a business. Some of these circumstances are exceptions, but you generally pay penalties to the government to withdraw money early from a retirement account.

If you have ANY non-mortgage debt -- and ESPECIALLY if you have credit card debt -- you should definitely pay that off before putting any money into savings, because you will never make enough in long-term savings to cover the interest costs of long-term borrowing.

Finally, while saving is always a good thing, retirement saving is a bit of an anachronism. Unless you're a coal miner, chances are you can continue to earn income well into your senior years, at which point if you have managed your finances well you will own a house and have minimal future obligations.

Since it's hard to predict 40 years into your future, I would tend not to encourage retirement saving EXCEPT when you have disposable savings to lock up indefinitely, and then only to take advantage of very advantaged accounts like Roth IRAs or 401k's that are employer-matched.

Answer 3

If you have earned income then yea, you can start retirement savings now. If you need help with that, I'm here to help because I'm part of this Financial Service Company that is looking to help many people become Financially independent. If you live in the NYC, we can probably see each other this week... and u can probably start saving next week, We just need to perform a financial needs analysis free of charge.

The younger you are, the less you have to pay... A retirement plan is like a Deffered Annuity. My company doesn't have any fees... it's free. All you have to do is send your Premium every month and we invest your money so that it grows for you. Trust me, that the business that I do is not a joke... It's all those other companies that charge you are fee that are jokes, they are just trying to take you money and invest it for them.... not for you. That why banks have a lot of money. They don't tell you about the Rule of 72 or about the Percentage Rate... imagine putting your money in a 12 percent rate... Your money will double every 6 years.. or so. I'm new in the business but i have learned a lot.

Answer 4

There is the story of two twin brothers. One started investing at age 19 and continued for ten years. The other started at age 29 and invested for 30 years. They both invested the same amount each month into the same mutual fund (the Vanguard Index 500). Which brother had the most money when they retired at age 60 ?
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The one who invested from the age of 19 to the age of 28 !!!!!!

Answer 5

I started when I was 23 and Im 29 now. My financial advisor told me that it was great to do that at such a young age, and I do recall her telling me that "a steak dinner" every payday was efficient for my student level income at the time. About $25 or so bi-monthly was taken from my paycheck before taxes, so it actually benefits your taxable income too.

You can open an IRA account at your bank/ credit union or through a financial advisor. They can help you to get it set up so that you have maximum earning potential.

Its never too early to get a good start in life. You will be that much ahead when you do start really investing in your future once you have a full time career.

Best of luck and go for it!

Answer 6

ABSOLUTELY! My son is 19 years old and started his retirement last year. Don't depend on the government. I gave him this advice and I am so happy to see another teen asking the same question. You should be so proud of yourself. Speak to a financial advisor for help, he/she should be able to show you how to invest and save your money for big return when its time. Good Luck!!

Answer 7

absolutely!!!...just by asking this question, it shows you are probably in the top 2% of your age group...don't leave it up to the govt. and social security, start an independent IRA with a reputable company. If you have a job with a company that matches what you invest, you'll double your money. If you don't, then invest what you can, and stick with it...you'll be amazed by the earnings you can accumulate over the next few years...

Answer 8

You should start soon. You never know what kind of money your looking at from the government in 30-40 years.

Answer 9

Start savings, like an IRA. But don't buy a tombstone yet.