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URL:  http://boards.fool.com/hiim-18-and-im-going-to-start-investing-for-10164369.aspx

Subject:  Re: social security Date:  4/26/1998  2:51 PM
Author:  FoolishBull Number:  3050 of 75790


[[Hi..Im 18 and Im going to start investing for my
retirement...Im curious tho..seeing Im paying a lot of
social sec. tax, and I know I won't see a penny in
about 2040 when I come around to retirement..but is it
possible to divert the money I pay into the government
and put it into some type of retirement account? Any
type..as long as I have some money to look forward
to...]]


Superr,


Regarding SS, I don't have anything to add except
TMF2Aruba started a discussion in the "fools and their
money" message board. See
http://boards.fool.com/Message.asp?id=1040007000287001&sort=id

I think it is great that you are getting Foolish early
since the next 10 to 20 years can make a big difference
in your bottom line when you retire.

Say you open a self-directed IRA account and invest
2000 at the end of each year until retirement (assume
65). Here's how your bottom line could change
depending on the age you start investing and your rate
of return.


Starting
age 11% 15%
------------------------------------
18 $2,435,495 $9,486,965
28 $845,965 $2,334,995
38 $286,147 $567,138
48 $89,002 $130,150

You can see how important it is to start early. Also,
many of the BTD strategies suggest that it's possible
to beat the 15% per year.


Good luck.
F.Bull
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