Is Retirement Saving a Fool's Bet?

Question: I’m 34 years old and have been investing 10% of my income in my 401(k) for 11 years. My balance of $160,000 is less than it was a year ago, despite continued contributions and company match. In fact, the Standard & Poor’s 500 stock index fund where I have most of my money is at or near its level when I started investing. Given inflation, dividends and the fact that I’ve been contributing steadily over time, have I made anything? Or have I been a total fool for my diligence? —Darin Knight, Vancouver, Washington

Answer: A total fool for having saved for retirement? Not in my book.

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If nothing else, you’ve managed to build a nice nest egg valued at $160,000 before reaching the age of 35. If that’s being a fool, I wish the world were full of fools like you. Most people can only dream that they’d gotten the jump on retirement that you have..."