Retirement: When to Begin Investing

Investing for your retirement is essential.  You cannot count on Social Security or your hopes of winning the lottery to see you through your Golden Years.  So when should you start investing so that you have enough to live on when retirement age finally comes around?

There’s really no required time frame in which to begin investing.  However, the earlier you begin, the better off you will be down the road.  If you are in your fifties and have not started yet, it’s time to begin immediately – you’ll at least be able to have some funds for your retirement.

The best option is to actually begin investing in your twenties, though many people do not get started until their thirties.  By starting to save for retirement early on, you give yourself the best possible chance of building a sizable nest egg to hold you through your retirement years. You then won’t have to worry of having to work or downsize your lifestyle or home.

With that said, investing in your early twenties is far more beneficial than doing so in your forties, or even your thirties.  The reason for this is that your funds have longer to develop interest.  This adds a dramatic amount of money to your savings account – whatever form that might take.  For example, $3,000 per year for 10 years in your investment account will add up to more than $400,000 in 40 years, even if you never add money beyond that first 10 years of savings.