I can only save a small amount of money every month. I need to save up for bar mitzvah, seminary, weddings, other expenses and simchos for kids. I do not have enough money to save for both the kids future expenses and simchos and retirement.
I figure I can start seriously saving for retirement in my late 40's-50s when my kids are older. The problem is that I know the power of compound interest. And I know saving a small amount now is the equivalent of saving 3x the amount in the future.
I am not sure if I should save for retirement instead because interest on interest can compound 8-12% per year depending on the market. And when my kids iyH get married, I can take out a home equity loan for lower interest than I would earn every year from investing.
Any financially savvy people that can weigh in on what is smarter financially?