I am Interesting in Investing in my future

[Rich]

I am interested in starting to save for my future. I am currently not really putting any money away for my retirement. I was thinking that its probably a bit early to be thinking about it (im only 20 y/o), but really it is never too early to start saving. I was thinking of opening an RSP or something, and putting a bit away from each month's earnings. I wont really miss the money, since I just end up blowing it anyways.

What would someone suggest for someone thinking of investing? I am looking for something with a good level of security (ie: not the stock market) Maybe a mutual fund?

Any and all comments appreciated.

[YogsVR4]

I am not familiar with the investment options in the Great White North, but if you have the equivalent of a Roth IRA - buy that! The money is taxed before you put it in but none of the interest is taxed when you take it out. Not only that, but you can access the principle at any time (if you really need to) and not pay any taxes.

Believe me when I say that no matter what you do, you'll be better off the sooner you start. I started when I was 22 and put a whole $20 away a week when I still hadn't found a good paying job yet. I only started making serious money the last several years (when I started to raise my savings rate). Even with the market down the last few years, with some diversity in my 401, Roth buying my own stocks I'm on pace to be a millionaire before I'm 50 yrs old based only on my retirement savings.

The wonder of compound interest is in your favor since you’re 20. Take a look online at investment forecasts. http://www.usatoday.com/money/calculator.htm#savings has some calculators you can look into.

The sooner you start saving, the better off you’ll be. At minimum, open an IRA and put some money into it. You can always move it around later.

[YogsVR4]

I forgot to mention - dont ignore the stock market! Sure its has a rough ride, but over the long haul (and since you're 20, thats one long haul) it'll make more then anything else out there. In fact, the reality is, now (maybe not right this minute) is the best time to be in the market. Not in a specific stock but at least in a index fund - the S&P 500 is the best one - for my money.

Because the market is low, good investors (the people running IRAs) will get good buys that will pay off in the long run. I'll remind you again we are talking decades. Twice as many as you've been alive.

There is about 4 trillion US dollars that has been taken out of the market and dumped in mutual funds at 3%. Ask any savy investor and they will tell you that is a bad move. You certainly dont want to be caught with one particular stock that tanks, like K-Mart. But, with a diversified fund, the people investing in there now are going to make out like bandits down the road.

Just so you know, the market has only 3 times in history gone down for 3 years in a row. And, did you know that when it rebounds it shoots up nearly 20% the first year and then anywhere from 8-17% for a few years after that. Do the math. Dont be afraid of the stock market. The big money is made their.

[Rich]

Thanks for the advice, Yogs. I really appreciate it.

I will look into the Roth IRA's and a few other things early next week.