Retirement plans

Wow, if I only knew at 22 what I know now!

As others have said, 401k, 401k, 401k! Especially if your employer matches. The match is a "guaranteed" return on your investment, plus you get the earnings on both portions, providing you stay long enough to "vest". Starting in your 20s, even with a reaonsable contribution that is not the maximum, you will do oh so very well!

I worked only for about 12 years at a place that had a 401k. That started a little over 20 years ago, and ended about 10 years ago. Initially I contributed less than the max, for a time I maxed out, but with a large family and some unforeseen things had to cut back some the last few years. For half the time the company matched 50 cents on the dollar. For the rest of the time, there was no match. When I left, the 401k was rolled over into an IRA. Looking back on the cash I contributed, the current value is worth about 6 times what cash I put in. Since my contributions were pre-tax, the net effect on my take-home pay was even less. For every dollar in take home pay that I shorted myself, I probably have about 8 dollars in the account today. Just think if these stretched out for another 20 years?

Compounding interest is so huge on the investments you will make in your 20s. Put whatever you can into it, no matter how small it seems to you today. You will thank yourself 35 years from now.