Retirement Planning: Start Early, Retire Comfortably
Retirement planning is one of the most important financial decisions you'll make. The earlier you start, the more time compound interest has to work in your favor. Even small contributions in your 20s can grow into substantial wealth by retirement age.
Take advantage of employer-sponsored 401(k) plans, especially if your company offers matching contributions - this is free money you shouldn't leave on the table. Consider opening an IRA or Roth IRA for additional tax-advantaged savings. Traditional accounts offer tax deductions now, while Roth accounts provide tax-free withdrawals in retirement.
Aim to save 10-15% of your income for retirement, including employer matches. If you can't start with that much, begin with whatever you can afford and increase your contribution rate annually. Diversify your investments across different asset classes and consider low-cost index funds for long-term growth.
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Quick Facts
- Start as early as possible
- Take full employer 401(k) match
- Save 10-15% of your income
- Consider both traditional and Roth accounts
- Compound interest works best over time