[slynn]

My mom has been on me since I got my first job to start up my retirement fund. My parents say it's important because you can't just hope social security will take care of you.

It sounds like a good idea; stashing some cash every payday can really add up and collect interest in the bank. I wondered if anyone else is doing this already. I'm only 21 and want to go about this in the smartest way possible so I can retire without worries.

So, have any of you started already thinking about planning your retirement? Do you have an IRA or bank account for it?

[questions987]

I have a 401k where the deposit amount in increased annually so I think it's at 7% of my pay now. I would recommend you start with that, find out what your company offers as a match and deposit the max amount for the match because that's basically free money so you should take it if you can.

[slynn]

Thank you! I will do that.

[watcher]

i stopped with my 401K and switch over to IRA (roth). only because i switched to a startup company. no match, limited options. i also decided to put the extra cash into a portfolio that my buddy manages. it's not necessarily retirement, but it could be. or it could be something else. flexibility helps!

[HtyPotter]

i think once you start your career and start work, you should definitely start investing. But I don't think it's NECESSARY to put a lot into retirement until you're in your 30s. When you're in your 20's, you should be able to take some risks with your money.

[RawrRawr]

HAHAHAHA.


I don't worry at all about my retirement. I have a savings account right now I'm setting away for my future kid's college funds. 95% of my money, after I pay off essentials like my school books, goes to that account.

No joke here... college is getting so expensive.
I think once my kids go to college, I will begin saving for my retirement. But now until my kids are in college, I'll be saving for them, lol.



[I'm 20 and I don't have kids yet.]

[Meenuh]

i'm saving money. not quite sure what i'm saving for but i'm saving. hahahaha.

[watcher]

i'm saving money. not quite sure what i'm saving for but i'm saving. hahahaha.

that's sweet of u...
saving enough to buy me that lexus!!
gosh mina... ur the best!

[Meenuh]

that's sweet of u...
saving enough to buy me that lexus!!
gosh mina... ur the best!

oh HA HA. i don't even have a car. why would i buy YOU a car?

[questions987]

oh HA HA. i don't even have a car. why would i buy YOU a car?

it's watcher - just pat his head and tell him to keep dreaming. the boy can buy his own lexus - he just has an obsession with spending mass amounts on pretty sofas.

[watcher]

it's watcher - just pat his head and tell him to keep dreaming. the boy can buy his own lexus - he just has an obsession with spending mass amounts on pretty sofas.

wut u talkin about... it's just a sectional!! ONE set!! >:[
going back on topic... i dont think the bank cuts it anymore.
high interest savings only keeps up with inflation.
one step better than hoarding cash under ur bed.

[Pogichinoy]

My plan is to invest mostly in property, preferring residential to commercial. I've got the standard 9-10% of my salary going in to super annuation and one property thus far.

Retirement is an option that I don't plan to take until I'm at least 65, possibly because I like to work in my industry.

[HERMIT]

If you're young it doesn't hurt to already think about the far distant future and start slapping down at least a little amount into an IRA just to get yourself started. As you get yourself more situated in your career and establish a more stable income, then you should consider adding more towards your savings and perhaps diversifying the ways in which you save/invest your money. Sure, you're still young and may not feel the need to worry about retirement now. But like they say, the earlier you start, the easier it is to get your nest egg to snowball into something bigger over time. The later you put this off and start saving later, then the harder it will be because you would have to put in that much more of a percentage of your earnings into your retirement savings just to "catch up" to the level of savings you would need to retire comfortably.

I'm no financial guru myself, but I try to sock away whatever amount of savings I possibly can. Working in the government sector, I'm able to contribute into two deferred compensation plans (457 and 401(a)) as well as the customary pension plan. I also have a variable life insurance plan in which I accrue a little cash value on the side that I could draw upon. Going back to my pension plan, I'm already vested and surprisingly only 10 years away from already meeting the minimal eligibility requirements for retirement. I guess for me, the pension plan is of most interest to me going into retirement because depending upon my longevity on the job, I accrue roughly 3% of my career pay for every year of government service. For example, if I retire after 25 years, my retirement pension would be estimated at roughly 75% of what my annual pay was when I was still working. Although nobody can actually top out at 100%, I could conceivably retire and still earn as much as 90% of my annual pay for my pension - after that, whatever I've accrued on the side with my 457 and 401a deferred comp plans would just be icing on the cake. And this is all without considering whatever pittance I would get from the social security system (if it still exists by the time I retire )

[matthieu-k]

401k is a good way to invest. also, some companies offer stock to their employees.

i previously worked for a local supermarket chain (publix), and they gave their employees stock. the stock would usually go up over time and then a few times it split 5 for 1, so the price would go down. buy even more stock and hold on to it. there were people retiring after maybe 20 yrs w/ over a million dollars worth of stocks, and they also had their 401k.

its good to work for your money, but better to make your money work for you.