When is the best time to start a 401(k)?

Short Answer: Now

Learn more: The sooner you start a 401k and start contributing, the more you will have later to meet your financial goals for retirement. Remember, not only do the contributions you make count, but consider the power of compounding, and reinvestment of dividends and capital gains can have a significant impact on your retirement savings. (Let’s say you begin investing at the age of 25, plan on retiring when you’re 65, and contribute $1,000 in your first year of investing. With a 10% annual return, 40 years later that $1,000 has turned into more than $45,000. But if you wait until you’re 30 to get started, that $1,000 becomes only $27,000. Waiting just five years to invest cuts your nest egg by a whopping 40%).