The age at which you acquire a stable, steady income where you can afford to put away a certain amount on a monthly basis. I would say this should definitely happen by the age of 30.
That makes sense, as most of us would be in good secure job by that age.
That is an excellent answer by janshares
The next best answer may be: Any time you can save. It seems that a lot of people have lost the idea of saving, or investing wisely or in buying tangible assets that will hold value or increase.
Even if you don't have something like a 401K plan, you can start saving at least little bit for retirement when you get your very first job. This applies even to teen-agers who are working while still in high school. By opening a savings account you decide never to make withdraws from and putting in only a few dollars a pay you'd be surprised how much money you can save before you retire.
As soon as a person starts working and earning money (even from a part-time or temporary seasonal job) is the best time to open start saving for retirement with an IRA (Individual Retirement Account).
There are two types of IRA accounts, Traditional IRAs and Roth IRAs. With a Traditional IRA one gets to deduct annual contributions from income for income tax purposes and the earnings on the account accumulate tax free. There are penalties for withdrawing funds prior to age 59 1/2 and funds withdrawn are subject to U.S. Federal Income taxes.
With a Roth IRA there is no tax deduction for funds deposited in the account, earnings accumulate tax free and no Federal Income Tax on funds withdrawn after age 59 1/2.
Because of compounding (the build up in an account from the reinvestment of earnings) the earlier one starts the better. Depositing small amounts earlier in life can result in a larger balance at retirement than making large deposits later in life (the current annual maximum contributions are $5,500 for people under age 50 and $6,500 for those age 50 and older).
Watch out for account fees, especially if you plan to start with small deposits as fees are subtracted from your balance and reduce both your current balance and earnings as well as the total amount you will have at retirement. Shop around as there are many excellent financial companies that charge small or even no annual or other fees.
I think having that age limit and penalties can be an advantage, as it can deter you from access it which can be a positive benefit in the long run if you start when you're younger. It's nice to know there are other options out there.
Deterring people from withdrawing money by means of a minimum age to begin withdrawals is intended to induce people to let the money sit and grow to a point where they have a reasonable income for retirement.
As soon as you begin working full time, at whatever age that is, begin putting money away for retirement/pension. You can't be hurt b saving money, and it becomes a habit if started early and you can build a fortune if it is done correctly.
How old are you now? It is sort of like planting a tree. The best time to have planted a tree was twenty years ago. The second best time is right now. Start saving for your future today. Even if all you can afford is to put back $10 per week, that is money that you will have put aside for future investments. Think about how easy that amount would be to save. That's about the same as if you were to make coffee at home three days a week rather than buying your coffee at Starbucks.
The sooner the better. I would start with your first job...even delivering newspapers...if anyone still does that. The power of tax deferred growth is a wonderful thing. But beginning sooner makes that much more of a difference.
Simple example...Let assume you started investing $2000.00 a year for 10 years at age 20. Then you stopped adding any new money Your initial 20k investment compounded at 8% per year would be worth $462k by age 65.
If you waited until age 30 to start investing your 2k a year, even if you did it every year until you were 65 with the same annual return...the value at age 65 would be $372k...even though you total investment is 70k.
The difference is what we call the time value of money. The time is often more important that the initial investment. But both matter. And the first bill you pay is yourself.
That's a massive difference alright and from that perspective it definitely seems worthwhile to start investing when your in your 20's.
Even sooner than that. I plan to set up custodial ROTH IRA's for my kids as soon as they have their first part time jobs.
As soon as we start earning, we should start saving too, for our future. Securing our future for ourselves and our dear ones is very important and should start at the earliest.
For you , I may be start saving for my pension at the age of 40 .
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