Ask Matt: How much money should I invest?

Q: How much money should I invest?

A: There’s no single dollar amount investment target for all investors. Just know you’ll want to invest as much as you can and as soon as you can.

The days of employers providing for your retirement, in the form of pensions, is largely gone. It’s your responsibility to prepare for the largest financial goal of your life.

The sooner you can put money into the market the better off you will be. The earlier you invest the more patient you can be, and having a long-term investment horizon is the biggest advantage investors have.

That’s not to mention other long-term financial goals you likely will need to invest for in order to meet, such as college savings for a child or maybe for a down payment on a home.

Look over your budget and find out how much you can reasonably afford to save and get started. You should be able to save at least 15% of your pay and have it earmarked for investment. Most people will need to save even more than that. Keep in mind many people will need 85% of their current income in retirement.

One thing is certain: Starting sooner can greatly reduce what you need to save. So, no matter the amount, start now.

USA TODAY markets reporter Matt Krantz answers a different reader question twice a week. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.