When Should You Start Saving for Retirement?

Jerry Guttman has almost 40 years of experience in financial advising and a diverse portfolio in helping people manage their finances and charitable causes. As the CEO of Total Living Plan, Jerry Guttman also provides clients with help and advice on their retirement options and funds.

One of the fundamental principles of building a healthy retirement fund is to start as early as possible. It might seem more pressing to spend all the extra money in their 20s and 30s on entertainment and amenities. However, the economics of retirement accounts generally favor early investment. In most IRA accounts, contributions made early generated interest, and that interest accrues over time. A dollar saved when you’re 25 generates significantly more at 65 than a dollar saved at the age of 50.

If the employer doesn’t offer a 401(k) plan, customized retirement plans can substitute it with similar plans. Investment accounts can also diversify a retirement portfolio, providing better interest rates while reducing the risk of wasting funds.