I don't know if this is adsurd but I really want to save retirement right now.
2007-12-25 13:21:23 · 15 answers · asked by College Kid 5 in Business & Finance ➔ Personal Finance
The sooner you start the better. A person who saves simply from 21-28 and stops, will end up better off than someone who starts at 28 and saves all the way until retirement age!!! It's called the Power of Compounding Interest.
2007-12-25 13:26:04 · answer #1 · answered by The Scorpion 6 · 3⤊ 0⤋
If you have everything you need and your family taking care of you and you have all the money you need for school then i would start saving . If you put it into a retirement account and you need it for school or a living expense as you didn't give any other information. You would have to pay a penalty if you took it early and then what good was it to put it away. If you have everything go for it. I f not i would be a little cautious on it as you might need it. If it was easy everyone would be rich when they get old.
It just doesn't work out unless you want to live like a miser or get a really high rate of return because of inflation. Inflation will make everything cost more and you'll have less money.
2007-12-25 15:56:42 · answer #2 · answered by Kris Z 2 · 0⤊ 0⤋
No, the younger the better. I'm 24 and just now starting to save for retirement. If you invest and save in your 20's you have a much greater chance of being rich and retiring one day. For some good advice I would suggest you read a book by Dave Ramsey called "The complete money makeover" and it will teach you to live frugally and how to invest and set up your financial future. Best of luck and happy holidays
2007-12-26 02:09:39 · answer #3 · answered by jt6341 3 · 1⤊ 0⤋
No, you are quite wise in considering your retirement needs now. Compound interest even at todays low rates will really add up over the years. Even if you believe the doomsday people that say the world wide economic system will collapse by the time you reach retirement age, you'll still have money saved up to buy canned food and shotguns. :-)
2007-12-25 14:22:51 · answer #4 · answered by robertdr60 3 · 1⤊ 0⤋
Age is not a basis of savings. The point of saving is this: the more money you save in more time will yield more. If you save while your 18, your portfolio after 20 to 30 years will dramatically increase. The principle of interest is rate x base x time. The more time the higher your base will increase.
2007-12-25 17:21:08 · answer #5 · answered by Friend T 2 · 2⤊ 0⤋
How much are you making? If you are just working a minimum wage job it is NOT WORTH IT. For one thing you probably hardly pay any tax right now. Save to contribute to your retirement later on... it's tax free so use it later when you are making more money to offset your higher taxable income.
Plus once you get a better job your employer will likely contribute or even match your savings each year if you are lucky.
Save money right now, but don't do it for retirement. Save up a nice down payment for a house.
2007-12-25 13:44:29 · answer #6 · answered by Anonymous · 0⤊ 2⤋
no i don't beleive 18 is too young, in fact I started then also.
I used a simple formulae that has always worked for me. It works on percentage of your income:
Living costs (ie rent, board, phone, electricity etc) - 60%
Spending Money - 10% (ie. night out, dinner out, movies, etc)
Savings - 10%
Debt Repayment (ie loans, hire purchases etc) - 10%
Addtional Expenses (ie, clothing, medical bills, etc.) - 10%
This has worked as 10% of my income goes to savings, 10% for spending money. If I wanted to get an item on hire purchase but the payments were more than 10% then I didn't get the hire purchase and saved for the item instead.
This has helped me out of a bad financial situation and helped others when I showed them also.
Hope this helps also.
2007-12-25 13:57:12 · answer #7 · answered by Archer10002 2 · 0⤊ 0⤋
NO!!!!!!!!!!!!!!!!!!!!!!!!!!!!! That's a great age to start. You can start saving/investing small amounts, & as your income increases, increase the amount of your savings. That way, when you are much more mature (like me!), you won't have to worry about how you will make it through your retirement. You'll already have a lot invested & saved!
2007-12-25 13:33:22 · answer #8 · answered by needtoknow 4 · 2⤊ 0⤋
It is a good idea and when you are that young you can put say 50 a month away and it will add up to lots when you are 65. Go for it.
2007-12-25 13:30:29 · answer #9 · answered by Nancy 3 · 3⤊ 0⤋
That is great! The more you save the more your nest egg will grow!!! Contact a financial planner and go in for a talk, find out all the options.
2007-12-25 13:30:07 · answer #10 · answered by lt4827 5 · 2⤊ 0⤋