Putting away some money is vital, even if you are young and in debt by John Waggoner:
Your company may also match your 401(k) contributions. Say you earned $50,000 a year and contributed 5% of pay to a 401(k). If your company matches 50 cents on the dollar and your money earns 5%, you’d have $3,847 after a year. In 10 years, you’d have about $56,000, if you got 3% raises yearly and earned 5% on your savings.
Starting small - If you don’t have a 401(k) available, at least open a Roth IRA. You contribute after-tax money to a Roth, but you pay no taxes on your withdrawals at retirement.
More on Roth IRA’s.
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I am a PhD student on a nominal yearly stipend. I am trying to head the advice to start retirement investing early. This year I am putting my entire stipend into my pre-tax 403b plan. Since I will not have taxable income, but technically will have “earned income,” will I be allowed to contribute to my Roth IRA too?
have less than $25,000 earmarked for their later years. But so do half of workers age 35 to 44 and a third of workers age 45 to 55 and over…