Most young adults do not think about retirement too much. This is definitely the case with young teenagers as well. However, it does not change the fact that we all will grow older and that retirement day will fast approach. It stands to reason that we are never too young to start planning for retirement and part of that plan is to start saving money and getting a good return on the investment of what is saved.

Just think about it. If a young person starts saving at age 18 and retires at age 65, then that is 47 years of steady saving. If a person were to save a dollar a day then that in and of itself would be $17,000+ dollars without even the consideration of interest. If a person is to save $1 a day for 47 years at a 5% return and a 3.1% inflation rate, that savings would grow to around $70,000. Thus, you cannot start too young. In fact the younger you start saving for your retirement, the better.

Initially, you might want to invest your money into some investment vehicles that provide high rates of return. These of course will be the riskier investments, as they tend to return higher rates. When you are young, it is advisable to do this because you can bounce back from market downturns with plenty of time to recover. As you get older and closer to retirement, you want to protect what you have accumulated and keep the investments in less-risky vehicles. Of course, you won’t achieve the high rates of return that you would in the risky ones but the idea here is to protect yourself from taking losses close to retirement. Also, make sure that all of your retirement investments are tax-deferred in that you do not want taxes to negatively impact you while you are building your retirement fund.

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