Are you financially planning for retirement?

[cliffdog]

Nope. I'm 20, I figure I'll start worrying about that in my late 20s, early 30s.

[Tankstar]

Yes. I can only afford to put a small amount away each month, But IMO its better then nothing. I put it in to a RRSP. We will see for the future about upping it. But for now, it feels better to know I have atleast started to do so.
Majority of my large savings is towards a house, in hopefully the not so distant future.

[Laurelin]

They started offering a ROTH at my work. I need to read up on it and see if it's something I want to do in addition to the other 401k.

[~Jessie~]

I want to look into getting a ROTH as well- I wish my work offered that as an option on top of the 401k.

For those who haven't started saving- it is SO important to do so. Even if you can only put in $25-50 a month, it WILL add up. Like Cali said, its worth more to put in a small amount now since it has time to grow.

[CaliTerp07]

Originally Posted by Laurelin

They started offering a ROTH at my work. I need to read up on it and see if it's something I want to do in addition to the other 401k.

It's not really a "do I do both" thing. You can contribute up to the federal limit (I think 50% of your salary or $15,500, whichever comes first) into a 401k of any kind. You can put that money in either a regular (tax-deferred) 401k, or a ROTH (post tax) 401k. It depends how much money you're expecting to be pulling in when you retire. My money is hedged on being in a higher tax bracket at retirement, so I'd rather pay the taxes now when I'm in a relatively low bracket. Hence, our money goes into ROTHs.

[Laurelin]

I'm pretty sure it's on top of the 401k instead of an alternative. I'll have to look more into it. It just was offered this year.

[Laurelin]

Originally Posted by CaliTerp07

It's not really a "do I do both" thing. You can contribute up to the federal limit (I think 50% of your salary or $15,500, whichever comes first) into a 401k of any kind. You can put that money in either a regular (tax-deferred) 401k, or a ROTH (post tax) 401k. It depends how much money you're expecting to be pulling in when you retire. My money is hedged on being in a higher tax bracket at retirement, so I'd rather pay the taxes now when I'm in a relatively low bracket. Hence, our money goes into ROTHs.

Oh ok. I haven't really looked into it yet. I just know that the company started offering a Roth as well as the 401k I already have. I guess it's more of an alternative then.

[Doberluv]

I have planned since I was in my early 20's. I always was conscious of saving even a little bit from every pay check, even when I was just a baby sitter at age 12, then a life-guard/swim instructor-coach in my late teens and early 20's. It's something my father emphasized in us kids. Of course, back then the economy was different.

I did more than save because just saving and putting it in a savings account doesn't keep up with inflation at all and you loose money when it just sits. So, I very early on invested in mutual funds and individual stocks and bonds, which did well in various decades. In any ten year period throughout the history of the stock market, stocks out-perform any investment. But I also bought some real estate. We bought our own home, then sold it when it appreciated a lot, built another home, sold that at a profit, bought another home and so on. And had a rental property so it would produce income and tax advantages. We should have done more of that. Having our own businesses also had tax advantages that you don't get with an employer.

It's never too soon to plan for retirement, especially in these hard times. People should put aside something...no matter how small out of every paycheck. Pay yourself first. And it shouldn't sit dormant, losing value. There are a lot of good values in stocks and bonds right now. It is risky but it's more than risky to not do anything or let it just sit. A financial planner can be a big help.

Disclaimer: Of course, this is just my opinion and I am not advising anyone, as I am certainly no financial expert. I wish I had done things a little differently.

[MericoX]

Does being unemployed count as early retirement? LOL

[BostonBanker]

Yes. Right now, I have 11% of my salary going into a 401k, and our company just re-introduced 410k matching. I'm not sure I will always be able to put that much away; as it is, some months I am squeaking by. But for right now, I can, and I know I will be glad I did eventually. I also have a smaller IRA that my father put some money into that his father had passed on for the grandkids. I don't put anything into that regularly at this point.