The Savage Truth on Money, 3rd Edition

CHAPTER 8The Savage Truth on Investing for RetirementThe Sooner the Better—But It’s Never Too Late

Time is money. And nowhere is that Savage Truth more apparent than when it comes to investing for retirement. Even a small amount of money, invested regularly, can grow dramatically over the years. But retirement is so far on the horizon for most millennials and Gen X and Y, that other financial issues seem more pressing. How is it possible to both repay student loan debt and save for retirement?

Well, here’s an optimistic thought: If you have a job, you’re already saving for retirement. You’re just not doing it in the optimal place. Social Security is taking a cut of your money from every paycheck. For sure, it won’t be enough to retire in the style you envision. So this chapter will show you some easy alternatives to getting started in retirement savings with a small amount of money, at a low cost, in a diversified investment, and without any hassle.

Getting Started on Saving for Retirement

The Savage Truth: The first step is always the hardest—getting started.

There is never “extra” money to save for retirement. So don’t bother looking for it. Instead, take a look at your paycheck. You’ll see a little box marked “FICA.” That’s Social Security—and it takes a nice hunk out of every paycheck. It’s your first step toward retirement savings—and it’s not a matter of choice.

Do you know what the initials FICA stand for? FICA is the acronym for Federal Insurance Contributions Act ...