You're 35. You rent in Capitol Hill. You have $2,400 in a 401(k). Retirement feels like a joke. Let's fix that.
I've had this conversation hundreds of times. A young or mid‑career professional comes to me, ashamed that they haven't saved more for retirement. They see headlines about needing $1 million to retire. They have $5,000. They feel hopeless.
But here's the thing: retirement is not a one‑size‑fits‑all number. And the path to retirement doesn't have to start with huge contributions. It starts with small, consistent actions that compound over decades.
Let me use a metaphor. Imagine you're planting a tree. If you wait until you have perfect soil, perfect weather, and a perfect tree, you'll never plant. You plant the seed today, in whatever ground you have, and you water it a little each week. Twenty years later, you have shade.
Retirement savings is the same. Start now. Start small. Start messy. Just start.
The Math of Starting Late (But Not Too Late)
Let's say you're 35, have $2,400 saved, and can save $200 per month going forward. You invest in a low‑cost target‑date fund earning 7% average annual return. By age 65, you'll have about $250,000.
That's not a million. But it's not nothing. Combined with Social Security (which will still exist, though maybe reduced), you could live modestly. You could work part‑time in retirement. You could move to a lower‑cost area.
Now, if you can save $400 a month, you'd have about $480,000 by 65. That's a solid nest egg.
The point is: every dollar you save today is worth more than any dollar you'll save in the future. A $100 saved at 35 could grow to $760 by 65 (at 7%). A $100 saved at 50 grows to only $280. Time is your greatest asset.
But What If You Can't Save $200 a Month?
I get it. You're paying $1,800 in rent. Your student loan payment is $400. Your car payment is $350. You have $100 left at the end of the month. How can you save for retirement?
You can't – not without making structural changes. So the first step isn't saving. It's increasing your income or reducing your fixed costs.
Let me tell you about “Elena,” a client who was in that exact situation. She was 37, earning $55,000 as a medical receptionist. Her rent was $1,500, student loan $300, car $250. She had $0 saved for retirement.
We worked on increasing her income. She got a certification as a medical coder (cost $2,000, took 6 months). Her salary jumped to $68,000. That's an extra $800 a month after taxes. She used half of that to save for retirement – $400 a month. She's now on track for $400,000 by 65.
She didn't cut lattes. She didn't move to a cheaper apartment. She increased her income.
The Employer Match: Free Money
If your employer offers a 401(k) match, that's the highest‑return investment you'll ever get. A 50% match on your contributions up to 6% of your salary is an immediate 50% return on that money. No stock market can beat that.
Example: You earn $50,000. You contribute 6% = $3,000 per year. Employer matches 50% = $1,500 free money. That's an extra $1,500 for nothing. Plus the money grows tax‑deferred.
If you're not contributing enough to get the full match, you're leaving free money on the table. I've seen clients ignore this for years. Don't be that person.
The Roth IRA: A Powerful Tool for Low‑Income Earners
If you're in a low tax bracket now (which most rent‑burdened Denverites are), a Roth IRA is better than a traditional 401(k). Why? You pay taxes now at your low rate, then withdrawals in retirement are tax‑free. If you expect to be in a higher tax bracket later (unlikely for most), Roth wins.
You can contribute up to $7,000 a year to a Roth IRA (as of 2026). If you can't afford that, contribute $1,000. Or $500. Something is better than nothing.
I recommend opening a Roth IRA with a low‑cost provider like Vanguard, Fidelity, or Schwab. Choose a target‑date fund for the year you turn 65. Set up automatic transfers. Then forget about it.
The Emotional Side: Fighting the “What's the Point” Feeling
This is the part I don't see enough people talk about. When you're struggling to pay rent, retirement feels like a fantasy. It's hard to care about 30 years from now when you're worried about next week.
I've felt that hopelessness. I've had clients cry about it. It's real. And it's okay to acknowledge it.
But here's what I've learned: the act of saving, even a tiny amount, changes your psychology. You stop being a victim of your finances and start being the driver. You feel hope. That hope fuels further progress.
Start with $25 a month. That's less than a dinner out. You won't miss it. But it will break the inertia.
The Allegory of the Mountain
Imagine you're at the base of a mountain. The peak is retirement. You look up and think, “I'll never make it. The mountain is too tall.”
But you don't have to climb the whole mountain in one day. You just take one step. Then another. After a year, you look back and see how far you've come.
That's retirement savings. One step at a time.
What About Denver's High Cost of Living?
It's real. It's hard. But high rent doesn't have to mean no retirement savings. You may need to make trade‑offs that people in low‑cost areas don't: live with roommates longer, delay homeownership, work a side hustle, or plan to retire elsewhere.
I've had clients who plan to sell their Denver home (if they ever buy one) and move to a lower‑cost state like New Mexico or Kansas for retirement. That's a valid strategy.
The key is to have a plan, not a vague hope.
I will keep posting updates on this. Check back soon.
P.S. Cooper is now 8 years old. That's 56 in dog years. He's retired. He doesn't worry about his 401(k). But he also eats the same kibble every day. Maybe there's a lesson in simplicity.
This article is for informational purposes. Retirement planning is complex. Consult a financial advisor for personalized advice.
Marcus Thompson
