401(k)an I just worry about this when I am older?

No!

I could probably end the post right there. Or just make a list of thousands of websites that support that one word answer. (I'm not going to do that though... especially since this is the first post)

If you are in Gen Y and still have hopes of getting any sort of money from social security you should probably give up now. That is not pessimistic, or "republican", or "democratic"... it is just pretty realistic. Honestly, you probably have more of a chance of getting a retirement payment from the toothfairy.

What is a 401(k)?
It is actually named after the tax code section that it comes from (cool right?) and is a plan where you make defined contributions into a retirement fund. Basically, a percentage of your income that you pick comes out of your paycheck each month and into a retirement fund. You have the option to invest the money how you choose within the fund (stocks, bonds, etc) and the money is all yours when you retire.

When should you start a 401(k)?
The textbook answer: now! But really? When you can and when it benefits you the most. Check with your company because many of them have a matching program. This is where the company will match all or part of your investment into a 401(k) plan. If they do? It is important to get the max matching as possible. This is free money in your pocket! Think of it as an instant raise. Plus it guarantees you a return on your investment. Check though. Some companies wont start matching until after 6 months or a year. Oh yea, but if you have student loans or credit card debt? you probably want to pay that off before you start saving. Compounding interest is some complex formula that I don't remember from Finance 101, but I know it really stinks.

Why is a 401(k) awesome?
It can be free money from your employer, and who doesn't want a bonus? Plus, putting money in savings can be one of the hardest things in the world. When the money comes straight out of your paycheck you never have the ability to spend it on those beautiful Louis Vuitton heels that you have secretly been admiring all season. In a world of instant gratification I need to be forced to save... you might be the same way.