Attempting to save for retirement?

I don't know a lot about investing. I don't have a lot of money to start with. But, I was wondering what is a good way for a person in their late twenties to invest for retirement? I know that you take the chance of losing money, but what's a good way with not losing a lot along the way?

Public Comments

1. IRA's that you have regular contributions to would be your best bet for now. Does your employer offer a 401k with a match? If yes, then that is your absolute best bet. All investments have a risk of loss. But because you are not supposed to touch your IRA's or 401's until you are 70 or over, history has shown us that you will make more than you could lose if you invest in moderate risk catagories. Good luck, and every little bit can add up over 40 years.
2. You can lose money with almost any good investment, however the strategy you employ to invest money will greatly mitigate that risk. Start a savings plan through a provider like sharebuilder.com where you can send anywhere from $10 to $10,000 a week into an investment account. From there you can buy stocks each week for low fees. A good way to mitigate the risk is to invest in INDEX FUNDS instead of just one or two stocks. The S&P 500 index will get you an average of 10% or so a year. Way better than a savings account. Also, since you are investing continously week by week, you are DOLLAR COST AVERAGING. DOLLAR COST AVERAGING is a technique used to help average out the cost of your investments through the peaks and valleys of stock or funds price history. Most importantly.... START NOW!!! Buy investing in your 20's you'll reap far more in COMPOUND INTEREST than most 30 year olds will their entire life. I wish you good luck!!! (Now go open your account and get started!!! Email me if you have questions.
3. I agree with Gem. If your company offers a matching 401(k) plan put your money into that. If your company doesn't match (or doesn't have a 401(k) plan) max out a Roth IRA, and if you have money left over put it into a company 401(k).
4. The safest way to invest for your future is to invest in a KEOGH(sp) or IRA retirement account. You can not take money out of them without paying a huge penalty until you are retirement age.
5. Open a brokerage account at Zecco and invest in Microsoft. Nintendo, Sony, Apple and Yahoo!
6. Choose an IRA that has several Index Fund Options ----- for instance, The S&P 500 (large Cap Fund) DOW JONES WILSHIRE 4500 (small cap fund) ISHARES MSCI EAFE FD (Intenational FUND) These are all growth funds and will go up and down but have a strong historical growth rate when investing for 20 years or more. Keep dollar cost averaging --- Put the $$ in and leave it -- and continue to put in as you earn it --- Sometimes your balance will be down but you will be buying in low also so it works both ways --- (consult a professional before investing --- i am not a professional)