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-   -   Starting to save for retirement (http://www.thefinanceforums.com/showthread.php?t=4956)

bobloblaw 01-26-2011 03:53 AM

Starting to save for retirement
 
Hi,
I'm 23 years old, have no debt, but also have little money to my name. I want to start saving money for retirement by investing. I have about $100 (USD) right now that I can invest, and will have another 100 each month that I can contribute.

I've read that since I'm young it's a good idea to play a bit aggressively and put up to 80% of my money in stocks, then move towards funds as I get older. I like this idea but I am unsure what do with the money I have now. Do I start with the $100 I have now, or should I save for a few months (say, to $300) then put 100 into funds and 200 into stocks?

Thanks for your input.

goodyphilips 02-01-2011 10:15 AM

Re: Starting to save for retirement
 
Quote:

Originally Posted by bobloblaw (Post 21328)
Hi,
I'm 23 years old, have no debt, but also have little money to my name. I want to start saving money for retirement by investing. I have about $100 (USD) right now that I can invest, and will have another 100 each month that I can contribute.

I've read that since I'm young it's a good idea to play a bit aggressively and put up to 80% of my money in stocks, then move towards funds as I get older. I like this idea but I am unsure what do with the money I have now. Do I start with the $100 I have now, or should I save for a few months (say, to $300) then put 100 into funds and 200 into stocks?

Thanks for your input.

I think you should start as soon as possible, its a good idea to start investing on stocks, make sure you go into it for the long term.
Once you have a big amount you can distribute your investments in various areas like real estate, various funds etc.

RichS 02-01-2011 01:19 PM

Re: Starting to save for retirement
 
I would suggest putting your $100 into a saving account for now. You don't have enough money to "invest" yet. Save your money until you reach $1,000 and then check out mutual funds. Stocks are too expensive and aggressive to start out with. Most mutual fund companies have mimimums that you can invest with them unless it comes directly from your paycheck or some arrangement with your employer.
Do some homework online or in the library. Go to Fidelity.com and Vanguard.com and read everything you can about "investing".
Keep in mind that investing is no different than going to a casino. There are no guarantees. Build up your money first until you feel that you could "lose" part of it investing and not have it affect your current lifestyle. When you reach that point then you can be an investor.

RichS CFP(r)
www.insimplelanguage.com

ralphegermain 02-07-2011 11:40 AM

Re: Starting to save for retirement
 
Savings are savings. It was invented with the purpose to save and help people in times of their needs. It will be nice for people if they would learn to save at the early times. It will help us all.

MarshallB 02-20-2011 01:55 PM

Re: Starting to save for retirement
 
Congratulations on your decision to save for your future. Starting to save as early as possible is the key to a successful retirement. However, many people approach saving as the last part of their budget. My suggestion is to open a savings account and make paying yourself a percentage of salary or a set amount each month your most important bill. :)

bsteele 02-23-2011 12:26 PM

Re: Starting to save for retirement
 
I agree.. Saings acoount is a good option right now.. just the fees alone in a vanguard or E-trade would make it difficult to to come out ahead. good luck anyways!

MaritesB 02-25-2011 03:16 AM

Re: Starting to save for retirement
 
Thanks for sharing this one

littleroc 03-06-2012 12:11 PM

Re: Starting to save for retirement
 
Yes Compound interest is our friend, the earlier you start the better. A 23 year old who invests $48,000 for 40 years (you'd be 63)making the stock market average of 10% since 1920, you'd have $584,000. If you were 35 and invested until you were also 63 you'd have $177,000. Does that make sense, by starting earlier the 23 year old always compounds more with the same amount invested. What you could do is every decade up your investment, which should be easy since you'll be making more income. Let's say for the first 5 years you invest $100 each month, you'd have $8,000. Then from age 28 to age 38 you max out your Roth IRA's which is $5,000 a year, you'd have $108,000. Then from age 38 to 48 you continued to max out your Roth's you'd have $367,000. From age 48 to age 58 if again you maxed out your Roth's you'd have $1,039,000. Then from age 58 to age 63 you maxed out your Roth's again you'd have $1.7 million all tax free. Not a bad return when you only invested $181,000 of your own money and using compound interest it is now worth 1.7 million. That is what I would recommend.

sneha6858 04-27-2012 01:47 AM

Re: Starting to save for retirement
 
Its good to think about saving for retirement. There are various plans for making our future more comfortable. Getting pension in our retirement is the best thing to pay all our expenses. You can go for a pension plan so that you will get good pension amount every month for your expenses. I would like to suggest you check it for AEGON Religare Pension Plan, you will get more good information about saving.

SunnyMay 04-24-2019 10:54 AM

Re: Starting to save for retirement
 
And what is your approach to casino games? Lately I am playing a lot at NightRush Casino and I've always thought that it is just for fun but now turns out that you actually can make some money this way, isn't it cool?


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