According to The Motley Fool, there is a magical age where you can invest for one year and be a millionaire at retirement...26!!! According to the article if a 26 year old maxes out their 401K with $15,500. and their IRA with $5,000 and leave it there for 41 years they will be a millionaire at retirement, that is assuming they will get 10% annual returns.

So what's the catch? Most 26 year olds today do not have $20,500. to invest in one year. That is a significant portion of your income when you are 26 but it's worth trying. In order for most 26-year-olds to save $20,500 in a single year, they'd either need to find a fabulously high-paying job or a rent-free room in their parents' basement. Either way, they'd probably be living on a strict diet of ramen noodles.

The point is compounding really does pay off if you start saving and investing young. This does not mean that everyone beyond their 20's should give up it just means that even young people should start investing for their retirement aggressively and not place it on the back burner.

So maybe you cannot max out your 401K with $15,500. this year but at least try to max out that IRA, it's only $5,000. Read more...