OK, you've graduated with a pile of debt from student loans, and you're making real money at a real job for the first time in your life. Retirement seems as distant as the Himalayas, but now's the time to get started. (No kidding.)
Get The Facts
Some of your friends may attempt to extend adolescence by going to graduate school to study arcane subjects. But if you're out of school, you've learned life's basic lesson: You're on your own, and everything is up to you. Devote your studies to the beauty of the 401(k). Read up on taxes. You can't plan without information.
Make A Plan
Your stylish friends will hoot, but develop a written retirement plan. Set goals and determine what you need to achieve them. The plan will change over time, but without a goal and a blueprint, it's easy to do nothing--and nothing will get done.
Start Saving
Consider setting aside 10% of your gross pay each month. Stupid-proof contributions to your 401(k) by making them automatic. This means you won't have to run to the bank each month, and you can't spend the money foolishly. You'll soon discover that it's easy to adjust your expenses to meet available cash.
Stick With It
Once you've set up a 401(k), don't tinker with the automatic contributions and don't borrow against it for a glorious trip to Europe with your sweetie. Keep an eye on your investments and broaden your study of investing. It's positive feedback: The more you know, the easier it is to learn more--and you'll make better investment decisions.
Burgeoning Gut
Shocking but true: The 28-inch-waist jeans you wore as an undergraduate may be tight in your late 20s. So, work on keeping your gut under control and that other peril of youth, debt. Many young people run up huge credit-card debts. This is stupid--check the interest rate. It also delays putting money aside for retirement.
Don't Count On Uncle Sam
The world has changed since the 1930s when Social Security was created. People live longer and will spend more time in retirement. The Baby Boomers will break Social Security, or force it to be changed beyond recognition. That means you can't depend on government programs in retirement. It's up to you.
