Should a 23 year old start worrying about 401k, IRA, and all that?

Short answer: YES. Even if you start small, just start. Time is your best friend when it comes to retirement planning, and the sooner you start the easier it will be.

I used to be a stock broker, and I can't tell you how many people put off saving for retirement until their 30's or 40's, only to realize that they would NEVER be able to retire. Don't let that happen to you.

If you have a job, find out about your employer's 401k plan. If the company matches your contributions, be sure you set aside AT LEAST enough to get the full company match. Then be sure to raise your % contribution every time your pay increases - EVERY time. If you don't have a 401k option available to you, then open a Roth IRA with a reputable mutual fund company like Vanguard, T. Rowe Price or Fidelity (my personal favorites). Start with a Target Date fund (with a target of 2045 or 2050) - this will get you on your way.

Then head down to your local library or book store and pick up one or two books on the basics of investing/retirement planning. This stuff is not all that complicated, but it is VERY important to know.

I hope that helps. Good luck!!

Should you know? - Yes, but ....

Do not worry about it yet. Use your current money for current expenses (like girls, --> wife, --> kids, --> house, --> a mini-van). There is no point in putting your money in a hole (so to speak) and not having access to it for 40 years. [ forget all that psuedo-math about making a million bucks if you start young.] There is also minimal current tax advantage for you.

^^^ this MIGHT change if your employer has a matching plan, but few do; or you make or inherit mega-bucks, unlike the rest of us.

All money, and whether it comes out of your right pocket or your left pocket, has a bearing on the quality of your retirement {good Lord willing you get there}. There is no point carrying credit card debt at 22% while hoping for 2% growth in the stock market.

A major cornerstone of / for retirement has always been a house (except the recent boom, bust) so start there, and the sooner you get ready to start (i e have the down payment, etc set aside) the better off you will be in the long run.

Realistically 40+ is when most workers have paid for their families and are making enough money to set some aside for retirement. In the meantime, live and spend in a wise, reasonable manner, and you will get to doing formal retirement planning sooner, and be in better shape.

I'm in the same boat, 23 years old, just graduated, know nothing of the sort.

I just started 401k via work. It sets money aside for retirement, basically tax free.

Everyone told me to go ahead and do it, I was going to opt out.

I figure I will do it as long as I can afford it, but if things get tight, that 3% of my pay check is going to me not my 401k.

Its not a bad idea really but if you think about it, your whole life is just one big preparation for the inevitable. Have to do good in high school to get into college, have to do good in college to get a good job. have to work hard so you can retire and die. I'm trying to enjoy the journey more than constantly preparing but like I said as long as I can live in my means, I'll throw some money aside that I would probably otherwise spend.

anyways that was my rant. sorry, I can't tell you much about 401k and ira, I'm just learning myself, but don't sweat it too much.

First of all if you can afford a 401k, you do not need to worry about anything ever. second unless you never pay taxes or claim things you shouldn't on them, or own a money laundering buisness there's nothing to worry about in regards to the ira. when you get married and have kids an start a family that's when you can look into saving and retirement. untill then **** bitches and get money

It is actually the best age to start thinking about it. Start contributing small amount now, and increase it as your salary goes up. MAny employers will match your contributions to 401 K - consider it as free money, and IRA (not sure whether roth or traditional) - you can claim up to $5000 as deductions from your taxes. So you will benefit either way. and it will earn interest too.

It would be a good idea to start saving for retirement now. You'd benefit from the compounding of your investment gains for a long period of time, getting a bigger bang for each buck saved. Preparing for retirement will only get harder the longer you delay. Time is on your side now, so take advantage of the time you have to prepare for retirement.