is it to early to worry about the future?

Question

im only 18 but will be 19 in less than 2 months im worried about savin for my retirment im i to worried or should i start saving now?
any advice helps thnks

Answer 1

The earlier - the better! I'm 21 and have been saving since last year.

Answer 2

A lot of people say the earlier the better, and it would be ideal if we could all invest X dollars starting at age 18. However, having just become a legal adult (except for alcohol, in the states, I guess), you're just establishing yourself. You'll probably find it hard to cut off X percent of your modest post-highschool income while you are working to set yourself up -- transportation, housing, student loans, food, etc.

If you are or will follow a career path that leads to greater income, you may not want to commit yourself to investing just yet, but wait a couple years until you are in a career path with solid income.

There will always be surprises, too. You may find yourself in a relationship, buying a house, etc. Will you wish you had saved up in a traditional account for a house down payment, or a wedding, or a little one on the way?

It's never a bad idea to save, and we could all stand to save more (though I hear some claim this is actually bad for the economy!) but I wouldn't put your money in a long-term locked-up way like an IRA or 401(k) or long-term bill. Maybe money market, maybe mutual fund, maybe just savings account. After a few years if you've weathered some contingencies and life events and you are still saving well, think about moving it to something with better gains.

Answer 3

It is NEVER too early to starting planning for retirement. If you do the math, the more you can invest now, the better off you will be, as time is really what will earn you a return on your investment. If you invest $1000 now, you'll have a lot more money than if you invest $1000 five years from now. It's really all about how much interest you can earn and, in the case, time is money.

However, you also have to be realistic. Starting out on your own costs a lot. So, unfortunately, you may not be able to invest a lot into your retirement now, but you should do all that you can.

Answer 4

i think you cant start 401k till your 21. I started mine and i already have 5k in it after 2 years. Its okay to start alittle later- youll have some serious commits like car college living etc right now. But you should think about it, and if you have the extra change put away 10-50 dollars a week in an account sololy for it. Then when it gets bigger role it into some C/D's or IRAs. You are alittle to worried. Because you dont retire till your 60 years old. If you save alittle every week over 60 years you'll then be set for the rest of your life. Seeing that most ppl dont live over 80.

Answer 5

The sooner you start putting it into an investment retirement account, the more time it will have to grow through compounding of interest.

For example, lets say you put $1000 a year into an IRA that returns 7% on your investment every year. If you start now, that account will be worth $242,000 by the time you are 60.

If you wait 5 years, you will only have $171,000. (You will have gotten to spend that $5,000 which seems like a lot now, but that will cost you $70,000 when you retire!!!)

If you don't start until you are 30, you will only have $109,000.

If you start now with $1000 a year and increase that as you make more money - well you'll be set.

Answer 6

I started with $400 at age 21 and have a brand new home and about 1/2 million in my investment portfolio at age 42 simply by living within my means and strict investing...and this is after taking a 65% hit during the bear market of 2000-2003....

Never too early.

Answer 7

It is never too late to think about the future until it comes...If you do, then at least you will have money put away. They have accounts that whatever amount you put in, they double...you can't get it out until your like 60, but then all the while growing up, you will feel confident and secure that you will be able to retire when you get there and be able to keep a house...or two!

Answer 8

The earlier, the longer of numbers you see in the future. Make it a habit to save a comfortable amount to your saving account or an investment account which is of better returns compared to the bank in a long term basis. Keep it up :)

Answer 9

NO!!its not too early but its the right time especialy in that age.
its better to worry about it now coz if you wait until you became
a bit older you will find out you have already screwed up and you
will keep say to yourself "if i could knew!!"
Most people screwed there lives especially teenagers thinking that they got a lot of time.
So get rid of that too early idea before spoil your future.

Answer 10

No, I've been worrying for years.

Really, you will probably live for 30 years more after you retire. Look into annuities as a way to be sure you will never outlive your savings. But don't worry yet, it';s much too soon.