“In your 20s retirement seems so far off that it feels absurd to invest in retirement accounts. Many young people put off saving for retirement because they are struggling to get on their feet, and investing can be confusing. But delaying retirement investing is a mistake. When you’re young, there is plenty of time for compounding to work in your favor.
Your saving rate is more important than your rate of return. When you’re starting out, the amount you save is much more important than the return on your investment. This is because your nest egg isn’t very large yet, and market swings have only a minimal impact on the total valuation.
While it’s difficult to save for retirement when you’re in your 20s, that’s the best time to get started. The earlier you invest, the better off you’ll be in the future.”
(I’ve run across Joe’s entertaining blogs a couple of times and recommend his posts to younger savers. Joe blogs about the challenges of early retirement and says he “recently left his corporate job to be a stay at home dad and blogger and is having the time of his life.”)