January 31, 2022

What Is the Right Age to Begin Investing in Your Future?

What Is the Right Age to Begin Investing in Your Future?

It’s never too early or too late to begin investing – but the sooner you start, the more time you will have to take advantage of compound interest and asset appreciation. You can start putting money away as soon as you turn 18, or even sooner if you’re earning a paycheck.

Some people falsely assume that they need to be making a lot of money to invest in a savings plan. This couldn’t be further from the truth. Even saving $20 every paycheck is better than not saving at all.

Some financial institutions offering traditional IRA and Roth IRA accounts don’t require a minimum deposit to sign up or have very low minimum contribution requirements. It’s never been easier for young people – or people of any age – to start saving for retirement.

Choosing Between Paying Off Debt or Investing

This is a tough choice for many people. Having as little high-interest debt as possible is essential to successful investing. If a substantial chunk of your income goes to paying off your debts, you may not have enough funds left over to invest in a meaningful savings plan.

Your investment growth might also be dwarfed by your debt’s interest accrual, which means in the long run you’ll have more money by paying off your debt than you would by investing that money.

The calculation is very personal. You essentially need to determine whether your investment dollars will grow at a faster rate than your debt’s interest. You may be able to use accrual calculators to figure out the math. Since no investment is really guaranteed, it’s not always easy to accurately estimate the rate of return your investments will earn.  

That’s why, for many people, paying off certain types of debt before saving for retirement makes the most financial sense.

Not all debt is the same. If you have a low-interest mortgage or auto loan it likely makes sense to prioritize your investments rather than paying off your mortgage early. If you’re carrying credit card debt at a 15 percent APR, it very likely makes sense to eliminate that debt before you aggressively invest for retirement.

The Financial Benefits of Investing Early

Waiting until your 30s, 40s or 50s to start saving for retirement can cost you hundreds of thousands of dollars in compound growth.

For example, if you open a Roth IRA savings account at age 25, make an annual contribution of $5,000 and earn a 10 percent rate of return, you will have accumulated close to $2.5 million by the time you’re 65. On the other hand, if you start the same process ten years later, you will only accumulate $905,000.

Ways to Start Investing

Invest in a Roth IRA

You can put after-tax dollars into a Roth IRA, which means you won’t have to pay taxes when you withdraw money from it in retirement. While a 401(k)s can be a great savings vehicle, you’ll have to pay taxes on the growth in your 401(k) when it’s time to withdraw those funds.

Many retirement savers also like Roth IRAs because they are usually self-directed. You may have limited self-direction options with a 401(k), but a Roth IRA can be used like any other investment brokerage account.

Contribute to a 401(k)

If you work for a large company or organization, chances are they offer their employees a 401(k). This employer-sponsored savings plan allows you to put a portion of your income into a retirement account. Saving via a 401(k) is relatively easy and doesn’t require a whole lot of discipline on your part. Contributions are automatically and consistently deducted from your paychecks, so you never have to consciously set aside money in savings.

Employers often match a certain percentage of their employees’ yearly salaries. For example, if you make $50,000 and your employer matches six percent of your salary, they will contribute $3,000 to your retirement plan. Taking advantage of matching funds is essentially like giving yourself a raise.

Work with a Financial Planner in Arizona

The success of retirement savings is highly dependent on the rate of return your money can earn. There’s no sure-fire roadmap to maximize your return, which is why many retirement savers turn to investment experts with a track record of success.  

At Fullerton Financial Planning, we work with a diverse clientele, ranging from Millennials to Baby Boomers. We will help you carefully craft the best retirement strategy that matches your unique goals and needs.

To speak with a financial advisor, call our Peoria office at (623) 974-0300, our Tempe office at (480) 912-4500 or fill out our pre-appointment form.

Begin the Conversation with a Free Retirement Review

This isn’t a sales call. It’s a focused, one-on-one conversation about where you stand and what’s possible from here.

What We’ll Cover in Your Retirement Review


Lifestyle Goals

What do you want retirement to actually look like? Travel, freedom, family, security — we start with the life you want, then build around it.


Current Assets

We’ll review what you’ve built — and help uncover smarter ways to use your 401(k), IRA, or savings more effectively for retirement income.


Income Planning

We’ll identify where your income will come from — and how to make sure it covers what you care about without relying too heavily on the market.


Risk & Tax Exposure

We’ll evaluate how your plan holds up to taxes, longevity, healthcare costs, and market shifts — so your income stays steady, even when life doesn’t.


Long-Term Strategy

We’ll help you turn what you’ve saved into income that lasts — without sacrificing the lifestyle you worked so hard to build.


The Next Steps

By the end of the meeting, you’ll have clarity on what’s working, what’s missing, and what to do next.

What You Get With Fullerton

  • A retirement income plan built around your lifestyle goals — not a generic formula
  • A coordinated investment and withdrawal strategy that supports income for life
  • Social Security timing guidance to help you get the most from your benefits
  • A reliable income floor — often supported by high-quality annuities with GLWBs, when appropriate
  • Tax-smart withdrawal strategies designed to adapt to changing laws and future needs
  • Personalized guidance on Medicare and long-term care planning
  • A clear roadmap for RMDs, Roth conversions, and income sequencing
  • Legacy and beneficiary planning that protects your spouse and supports your values
  • Ongoing reviews and proactive adjustments to keep your plan aligned as life evolves
  • Direct access to your advisor — no call centers, no hand-offs
  • A secure client portal with full access to your plan and documents
    Invitations to Fullerton’s exclusive client events and appreciation gatherings
  • A local, retirement-minded community with shared goals and values
  • Financial confidence for your spouse and family — with clarity, not complexity
  • Experienced, time-tested guidance from a leading independent Arizona-based planning firm focused on your future

Income
Planning

A strategy to turn your savings into reliable, steady income — so your lifestyle stays on track in retirement.

Tax
Planning

Smart planning to reduce future taxes and keep more of your money working for you.

Health Care
Planning

Protection against rising healthcare costs, including long-term care, built into your plan.

Risk
Management

A clear approach to guarding your wealth from market swings, inflation, and the unexpected.

Real Estate
And Legacy
Planning

A plan for your assets and property that preserves your legacy and supports your loved ones.

Planning With Fullerton

Relationship Building

You’re not just another account. At Fullerton, every relationship begins with real conversation — taking time to understand your values, priorities, and goals. That connection becomes the foundation for a plan that’s built around you, not a formula.

Personalized Experience

No two retirements are the same. Your strategy will reflect your unique goals, lifestyle, and financial position. Everything is tailor-made: your income structured, your tax plan, and the preservation of legacy. The difference in the details — because it is built around you.

Holistic Approach

A good plan looks beyond the numbers. Your lifestyle, your family, your values — it’s all connected. That’s why our planning process considers every part of your life, not just your portfolio — leaving no stone unturned.

See What Fullerton Can Do For You

Going from "I hope this works" to "I know I'm covered".

Experience You Can Trust

Retirement is too important to trust to a generalist. That’s why for over 20 years, Fullerton Financial Planning has focused exclusively on helping people transition from work to retirement — and thrive throughout it. We’re not trying to be everything to everyone. We’re built to help you do one thing incredibly well: Turn your life savings into reliable income and lasting financial confidence.

Why Families Across Arizona Trust Fullerton

  • Over 20 years helping Arizona retirees create income that lasts
  • Trusted by more than 2,000 Arizona households — and growing
  • Independent, fiduciary-based advice — no quotas, no product push
  • Certified Financial Planner™ (CFP®) professionals on staff
  • Regularly featured on ABC15, MoneyRadio, and financial education outlets
  • Local, in-person service — no national call centers or rotating advisor teams
  • Planning approach integrates investments, income, tax, Medicare, and legacy goals
  • Collaborative relationships with CPAs, estate attorneys, and insurance professionals
  • Focused on education-first guidance, not sales pitches or one-size-fits-all plans
  • Supported by a dedicated client service team with a reputation for proactive care

“I was nervous about retiring — but they helped me see the whole picture and gave me confidence to move forward.”

— Mary J., Scottsdale


“They made a complicated plan feel simple. I wish we’d come here five years earlier.”

— Brian & Sandra T., Mesa


“They treated me like a person, not a portfolio. I never felt pressured — just supported.”

— Teresa D., Chandler


“Our old advisor never talked about income or taxes — this team gave us a plan we could actually live on.”

— Kevin M., Sun City

The Fullerton Family

Standing Strong For Clients.
Stepping Up For the Community.

Begin the Conversation

We’re here to listen, understand, and help you take control of your financial future.