Yahoo has a list of 10 retirement pitfalls and I'm going to list and comment on them all. Here's today's pitfall:
Believing it's OK to wait: The magic of compounding interest is an important factor in growing your retirement fund. Even when you save small amounts in your early work history, the returns earned on that money will build on the base and, over time, will likely help you come out much further ahead than if you wait until later in life to begin your retirement savings. You should begin contributing to your retirement fund as soon as you begin your first job out of college (if not sooner). This will make the question of whether you're contributing enough to your retirement fund a non-issue in later years.
What they said. DO NOT WAIT!!! Save now! Invest now! You want the power of compounding and time to work for you -- the more time the better!
Don't beat yourself up if you've "wasted" several years and haven't saved for retirement. There's nothing you can do to change the past. But you can make your retirement the best it can be and the way to do this is by starting to save now. Save early, save often and never stop.
So, do you think I made my feelings clear on this issue? ;-)
For more on this issue, see these links:
You have Dave Ramsey and others that preach get out of debt first before you invest. So a lot of people will focus on debt first.
I say while you are getting out of debt still contribute to your 401k, even if it's 4%
Posted by: Moneymonk | June 07, 2007 at 12:33 PM
I don't believe it's OK to wait, but I can't save and invest anything if I don't have disposable income.
Or, as I respond to these Yahoos, how much do you expect someone who earns minimum wage and has student loan debt to save?
Posted by: Minimum Wage | June 07, 2007 at 05:32 PM