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In Reply to: I think about this more these days posted by Oldtimer on November 11, 2004 at 21:58:43:
I am a Trustee on a $150 million dollar union pension fund. I know quite a bit about this stuff. But, the key is to save at least someting out of every paycheck.
I haven't read down the thread yet, but I see IRA and 401K accounts are mentioned. That is the way to go because they allow you to get a tax break, and the earnings on the acount aren't taxed until you take the money out of the account.
Another thing to do is try and find a job that includes a pension. These days that can be difficult.
If you employer has auto-deposit for payroll, they can often take money out of your check for you and put it in an account that you specify. Put as much as you can comfortably afford into an IRA, and remember, at the end of the year you are going to get a tax break from it that will offset some of the money you did without. Or, talk to your tax professional and see if you can take an extra exemption or two on your paycheck to offset it a bit.
It's amazing how a little bit of money can add up over time, especially with compounded interest and tax free savings in an IRA or 401K.
