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Here's what Tripod members have said so far:
KrisWagner: One helpful hint for saving consistently -- do a direct deposit (even if it's just a small amount) each paycheck to a mutual fund company of your choice. I find that I don't miss the money as much when it's taken out before I even see it.Also, about once a week I empty out the change from my wallet into a shoebox. You'd be amazed at how quickly it adds up! Once the box is full, I deposit the entire amount into a separate fund that I created just for "spare change." I have been watching it grow -- it's great to see all of those coins add up.
ralphb: Start out small -- just a few bucks taken out of your paycheck and put into an IRA or 401(k) is better than nothing, and adds up. Many company 401(k)s match your contributions, at least partially. This can make your account grow very quickly and the effective rate of interest can be astounding. If you're young, invest this stuff in the most aggressive way you can stomach. It will likely pay off in the long run.
caffine: If you have paid down debt, which a lot of us have done, reward yourself by making a budget and pay yourself first. Start small -- $25 to 50 a month, and work up to 10%. Direct deposit works best. I suggest no-load funds. They force you to learn about investing -- which is a great evolving skill -- and put you on a level playing field with anyone in the future who will manage or be involved in your finances.
Also, make sure you have another bank account for emergencies so you are NOT tempted to touch your retirement savings.
KUZNOFF: Whatever way you go about it, do it NOW, always expect the unexpected. I nearly always worked at sub-contract jobs and kept putting it off. When I did get a 'steady' job, I never signed up for a retirement fund, 401k, etc.; figuring I would be back on the 'job shop scene', or never stayed long enough at one place to accumulate any vested interest. At 46, due to complications from a childhood accident, and overworking for that mighty $; I finally wound up with a heart attack that sealed my fate and I had to put in for S.S.D. I'm stuck living soley on that income. WORSE-- few people realize that if you put in for disability, your payments are calculated according to wages earned in your LAST 4 QUARTERS before applying; ONLY! I was lucky enough to be able to work (even overtime) right up to when I applied, so I just manage to get by on a check per month that is roughly equal to what I earned per week while still working.
matthewd: I am 22, and live in Canada. I started investing in my retirment savings before I turned 22. I thought that it was important get a base of income started for the future. I know that money will be tight in the future, and also it will cost a lot more to buy stuff then. We don't know how the economy is going to turn out in the future, so it's better to prepare now and continue contributing with each job you get.
VLemley: If you can put away $2000 a year in an 401k at 8 percent starting at age 25, you'll have approximately $1,314,000 by age 65. Think about it.
sclayton: I had zero retirement savings until I was 37. Whoops, forgot to save! Since then I have been very disciplined at saving a minimum of 20 percent of my gross income each year. Several years this has been 30 percent. Most of that is by direct deposit -- I never see the money and never have the temptation to spend it. Friends of mine at my company with roughly equal family size (2 kids) and income have told me it is impossible for them to save 20 percent, but they do use the 401 K -- one would have to be nuts to turn down the free money offered by a 401K plan.
Anyway after 8 1/2 years of saving I am beginning to think I will be able to retire sometime in my 50s wth a reasonable income. It would have been much better if I had started the saving when I was in my 20s!
phillykid: Yes, I've started to save (actually I started 12 years ago, then stopped for about 5 years). But now I'm back in full swing and since the market is paying everyone so well now, it would be silly for someone not to save for their retirement years. Unless you're from a very, very wealthy family, you'd better start saving now; otherwise you may end up as a destitute street-dweller. I'm 33 but know that, without doing much of anything, I'll have about a million dollars to live on by the time I reach retirement age.
IncomeSolutions: Don't be fooled into thinking that you neither need nor want life insurance when you are 60 or 70 or 80 or whatever. Trust me on this... you will, especially if you are a really savvy investor and accumulate a large estate value over the years.
bobananda2: I had more then my forty quarters in under Social Security 15 years ago. For the past 13 years I have been living in a 501d organization that doesn't pay into S.S. or allow me to accumulate any money. I intend to take my ~US$500 a month from Uncle Sammy at age 62 and move to a tropical third world country where the average GDP is ~$1200 a year either by myself or form an intentional community with others in the same boat.
G0lf: JShaft:I've been putting 10% a year into a 403k plan for three years and plan on using it to purchase a first home.I'm forty years old and can pay my plan back with the interest going into my retirement savings account. The regulations governing individual retirement accounts provide penalty free withdrawal allowances for first time home buyers, out of pocket medical cost above seven percent of gross yearly income and some stipulations to educational financing needs.
I hardly miss the auto-withdraws from each check and figure I can only come out ahead in the long run.There is a lot be said for having a little nest egg.
justiced: I'm 63 and ready to harvest the fruit of my frugality :>) Wish I could say that I followed all of the *sage advise* of the experts when I was younger and now have a mega-buck nest egg.... But, my wife and I do have a comfortable income to look forward to based on company retirement plans, social security and the dollars that we saved via payroll deduction that were allowed to compound over time.... Never looked for the "Big Kill" -- rather just used consistant mutual funds and let the U.S. economy work for us.....
rstaley: I work in a large factory. I have started some retirement funds; but it isn't enough. I have just 7 years to retirement. I know I will have to keep working longer. Mortgage,12 year old son. It all adds up. I have been under pressure of the high cost of living and I know I just do not have enough.
nostrand: I started purchasing stocks when I was 20 and had very disappointing results. But when you are young, you can make a lot of mistakes and still come out ahead (so don't be afraid to take a risk). All it takes is discipline and time. The American Association of Individual Investors (www.aaii.org), on page 19 of their June 1997 AAII Journal, examined the consequences of investing at the highest, average, and lowest points of the S&P; 500 index for 1950-1995 and the average annual return were 7.9, 7.5 and 7.2%, respectively. Now, the first stock I purchsed, the Boeing Company, has split 2 for 1 and more than doubled my capital.
thaynes: If your employer has a 401(k) program with a matching policy, it is a no-brainer to contribute. My company matches what I put in (up to 6 % of my income) with 50% in company stock. Even in a bull market where some mutual funds are getting 20-30 % annual returns, imagine getting 50 % return immediately, just for joining. I like to think of it as a signing bonus every two weeks.
justiced: For years my ambition after retirement was to get a tag-along food trailer and set up at the City Dock in Key West to sell funnel cakes at Sunset.....
Then I found out that there are problems like availability of space (none) and Health Dept. licenses, etc.
But... Email has less postage and goes faster than snail-mail. Now I have a mail-order business on the Net. I sell ideas that enhance business and personal profits. Its fun and growing and will make enough profit to supplement my retirement when I get there (in two years) :>)
posters: I have started saving for my retirement fund. I'm now 21 years old and I signed up for the plan to where I put $200 per month into an account until I'm 31 years old. That is a total of $2400 per year. Then you figure another 35 years before I retire at 10% interest. If I retire at the age of 65 that will be a grand total of $3,000,000 for my retirement fund. I recommend that anyone that is just turning 21 to start doing this type of savings plan. If you don't you won't be able to do it later. This is for the age groups of 21 to 31 only.
KMorrison: Two great tricks! The first is that once I paid off the car, I IMMEDIATELY increased my house payment to exactly the same amount, with that extra going to the principle. Doing that, I now have only 17 years left of my 30 year mortgage, and I did it in five years! The second trick I heard somewhere else, but it's great. Take $5,000 (I know, first you have to come up with that!) and put $1,000 in a one-year CD, $1,000 in a two-year CD, $1,000 in a three-year CD, $1,000 in a four-year CD, and $1,000 in a five-year CD. The five-year CD earns much better interest, but it's hard to commit money for five years, when you might need it. Anyway, now when your one-year CD matures, you open another five-year CD. Next year, your two-year CD matures, and you open another five-year CD, and so on. By the time you've rolled all your CDs, they are all five-year CDs, earning the better rate, but you have one maturing every year so that it's more available time-wise in event of an emergency.
CarolGleason: Not only do financial advisors recommend participating in a 401K, but it's usually the first and most emphasized advice given to clients. Get into your 401K just as heavily as the plan allows on the next open enrollment date. Starting as soon as possible is critical since a small additional contribution now has exponentially enhanced returns later, yielding drastically more than larger contributions begun later in life.
Now that you've read through the responses, add a few thoughts of your own.