When Might Be The Best Time To Start Saving For Retirement? A

. You should start saving for retirement as soon as possible.

b. It’s impossible to know when the best time is to begin paying into a 401(k) plan or other retirement savings vehicle.

c. The earlier you set up your accounts, the more money will be invested and earning interest by the time you retire, which means it’ll work out better in the long run. Answer: B

The sooner you start saving for retirement, the higher chances are that enough income from your investments will be available at age 65 to live comfortably on a fixed income of $20,000 per year (the average cost of a single-family home in 2015). If that doesn’t seem like much compared with what most people spend on food and clothing each month—and even less after they pay their mortgage—try this thought experiment: What if every dollar spent now was instead invested? Say it went toward an account where payments were made semi-annually (once every second month), adding about 20 percent annually? Over 40 years, this amount could grow to well over $1 million! That’s millions of dollars saved! See how important it is not only starting early but also sticking with investing even though there are times when its ups and downs may feel frustratingly unpredictable?

You can minimize those ups and downs by diversifying your investment portfolio among different kinds of stocks or bonds because these types often have differing rates of return depending upon market conditions at any given moment