At 24, should I start planning for retirement?
After being with my company for a year, they contribute 8% of my salary to a retirement fund. I just got a huge packet from HR that I need to look over regarding my retirment, but I get so confused with financial matters. I just turned 24 and am at the beginning of my career and wonder if this is necessary? Also, if I change companies, what happens to the money my company has contributed? I want to be comfortable when the time does come to retire, but at the same time right now I want to save money to buy a home eventually and pay off student loans. Anyone have any thoughts? Been there, done that? Thanks!
Public Comments
- Heck yes, the sooner you start the sooner you can retire or have more money when you do
- yes, i'm 25 and just started investing w/ my company, though the company has been contributing since i began 4 yrs ago. the average retirement age right now is 65... in 40 yrs it will probably be 70-75... the sooner you plan, the better off you'll be.
- If you can get anyone to give you free money, especially an employer, take it. Start now if you want to be really comfortable in your retirement years. If you move to another job, the money in your account is yours. The company cannot take it back. Unless if is a profit sharing plan that you must be vested in. If it is a 401k, the $$$ are yours, no-one can touch them. Than at the new job, you can either leave it in the investments from the first job, or transfer (rollover) to your new employers accounts that will be set up for you. Good luck.
- invest for life!!!! start now or retire poor. hey s/s won't be around when you reach retirement age. look into the company's 401k,403k and any ira they might offer. if you leave it all belongs to YOU. and the best thing it can all be rolled over to any new company that hires you, if and when that should happen the new company can show you how, and the best thing is the roll over is FREE. also you can borrow against any retirement plan to purchase that house you want if enough is put aside now.
- This requires some work. It has everything to do with you and your future. That HUGE package you received is very important for the present AND your future. Its never too early to plan for retirement. THE CHALLENGE ["problem"] most people have: They don't have a clue what they are reading or how to interpret what they are reading. Suggestions: 1] Read through ALL the material at least once. Read it, but don't try to interpret what they are trying to communicate to you. 2] DON'T talk with any of your co-workers about what they think or what they are doing [or not doing]. 3] Read through the material a 2nd time. Make a list of the terms, Qs and the concerns you might have. 4] For those terms, acronyms and expressions you aren't sure about, go to http://investopedia.com This is an excellent free site, recognized by Y! A as a "Featured Knowledge Partner". It has an excellent dictionary feature for financial terms, acronyms and expressions. 5] For ANY and all Qs you believe might be applicable to your situation, I STRONGLY suggest making an appointment with one or more of the folks who adopted the plan for your company. He/She could be the COO [Chief Operating Officer]. He/She could be the CFO [Chief Financial Officer] He/She could be the Chairman/Chairperson of the Board. Ask him/her/them to explain or clarify exactly what is meant - as it pertains to your particular situation with that company. BELIEVE ME, it could be or should be time well-invested Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name!
