How old do you have to be to start a retirement plan?

Question

I was just wondering if i was old enough to start my [lan or not. Im 20 going on to 21.

Answer 1

The earlier the better! With Compounding interest you can do yourself a HUGE favor and start investing today.

If your employer offers it sign up for a 401 (k). Im only 21 too and i'm just a student so cant have an employer offer it but I use Scottrade.

Any of the internet sites are a good way to invest your money in some sort of stock. If you are not sure what to invest in, any kind of index fund or Spyder would be great!

Start investing today, and you and I will be the ones retiring early!!!

Hope this helps

Answer 2

Starting a retirement plan is easy, sticking to it... now that very hard to do.

I was really shocked when I read an article not to long ago that Americans are only saving about $.47 (cents) per hundred dollars towards retirement.

If you really want to retire early (like late fifties, or early sixties) then you'll have to start learning and investing in the stock market. If you put $200.00 per month into the market for say fourty years, you will have invested ninety six thousand dollars.

If your stock have doubled in that time, then you could be looking at retiring with $192,000.00 on top of your regular retirement. and other small savings here and there.

Of course it's risky but, so is the banking industry's intrest rates.

Either way, I wish you well, and hope you keep your thoughts and goal of retirement in mind.

Good Luck

Sparky Miller
Wellsville, Ohio USA

Answer 3

As soon as you have a job, I suggest that you start contributing to a retirement plan right away.
20 or 21 is fine. I know a few who started at 14 . Their parents made them do it. These are the same parents who would want you to invest money already because some of those retirement funds can be invested in longterm ventures. You wont need them until 35 to 40 years from now.

Answer 4

You should be earning some money. If I was 18 and working, I'd start planning.

I'm sure you've seen this, but many people have made up examples of the impact of saving when you're young. You know they're based on if you save just 5% or 10% of your income from 20 to 40, you'll be rich at 60. If you wait until 40 to start saving, you'll never catch up.

I should find one on the net and link to it.
Okay, here you go, see the link below. This isn't the best, but it turns out they're hard to find. The search terms "Early saving for retirement" brings up a bunch of stuff about "saving for early retirement".

P.S. A 401K is great, because you can't spend it, and your wife can't spend it, no matter how much you want to. The willpower of the 401K is enough for both of you.

Answer 5

You are never too young to start. Being 20 means you actually have a legg up on those who start later in life. At the ripe old age of 20, you'll have a good 40 years to save. Also, if you start now, you may be able to retire younger than most folks.

I waited until later in life to get started and my wife and I will have to continue saving until we are at least 60. If you get serious and start now, you may be able to retire while in your 50's. A good thing about starting a serious savings plan now, you will have the cash to invest in your own business one day if the right idea or opportunity comes along.

Good Luck!

Answer 6

You can start one at any age.

Most military people start one as soon as they join (many at 18 yrs), and put into it as long as they are in. It's call Thrift Savings Plan (TSP) but is essentially an IRA.

Go to your bank and ask about an IRA (Individual Retirement Account).

Heed this: Social Security is in big trouble. No, make that BIG TROUBLE. Everyone needs a retirement account.

If you are 20 yrs old, and Social Security isn't fixed - what are you going to live on when you're 70 yrs old? Start saving NOW!

Answer 7

Start. Right. Now.

If you're thinking about it, that means you've already got your head screwed on straight. Go into a bank or an investment office and speak to a financial advisor. No need to be shy or feel out of place. You're exactly where you need to be at this point in time in your life - right at the beginning.

The most important thing is to find someone you feel comfortable talking to and who you feel is going to give you sound advice. You need to find someone who you can foster a financial relationship with. Ask parents, grandparents, relatives, even friends and their parents for recommendations.

Get started quickly. Every dollar counts.

Answer 8

I think you can start a retirement plan at any age. The younger you start, the better off you'll be.

Answer 9

Go for it. A lot of people don't start saving until late in their working lives and have a hard time saving enough.

Answer 10

Start it now! I'm 55 and waited way too long. If you can afford it, max out your 401K contribution, particularly if your employer will match it. Start now and you might be able to retire comfortably. Me, I get to work until I die.