by Mark Murphy

Created on: January 21, 2007   Last Updated: April 15, 2007

When should someone start investing for retirement? Right now. Almost any investment counselor or website has a graph or chart showing you how much money you'd have at age 60, if you'd have begun saving in your early teens.

There are plenty of financial corporations that will let you open up an IRA or Roth with no minimum or a modest amount, around $250. The trick is getting the most for the small amount you can put in at the moment. Finding no-load mutual funds with low fees or brokerage accounts with low trade costs is extremely important. Remember, if you are beginning to invest in your retirement in your teens or even younger years, look for growth.

Not in your teens any longer? That's fine, too. You still have plenty of time and maybe more options. When you're 11 or 12, your parents' willpower becomes your willpower. After you hit your 20s and 30s you're on your own. Critical choices need to be made. Money gets tighter...rent (or mortgage), bills, maybe kids, they're all pulling on you. If you can have a regular automatic withdrawal from your paycheck then you can eliminate the whole willpower issue. If not, you could have some troubles.

Folks in their 40s and 50s should now see their retirement in the not so distant future. You're running out of time, but you should have more wisdom and more resources. Now is the time to invest aggressively. Socking away even larger amounts that younger folks is imperative. Growth and income is your goal.

People in their 60s and above probably feel that they are out of luck. For the most part, they have missed the boat. The key now isn't growth, its income. A mutual fund may not have the time to grow into a big deal since you're possibly already retired or on a fixed income. Seek out stocks that pay regular divideds. These dividends can become an additional stream of income. Do some research however, and make sure the stock isn't paying more dividend that it can afford, or paying it sporadically.

It's never too late to invest in your retirement. Just remember that each stage of your life helps dictate how you do that investing.

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