It’s never too early to start thinking about saving for retirement. In fact, when you’re a college grad or new professional, saving for retirement is even more powerful — because your money has even longer to grow.
In today’s episode of Your Money Minute, I want to talk about advice for saving for retirement when you’re a college grad or new professional. It’s often difficult to think more than a few months down the road, let alone 30 or 40 years until you retire — but being purposeful about saving now can mean the difference in being financially independent and working tirelessly into your elder years.
I suggest you look into your employer’s matching options, such as a 401(k) or 401(b). In most instances, your employer will match between 4% and 6% of your total paycheck. This is free money — and you should absolutely take advantage of it!
And one word of caution: When you sock away money for retirement, know that you must absolutely not touch these funds until you’re of retirement age. Early withdrawl of money in retirement accounts means penalties, taxes and headaches galore. Don’t do it — it’s not worth it.
For even more advice on making the most of your money and life, remember to subscribe to my YouTube channel, where you’ll get the latest episodes of Your Money Minute in your feed each and every weekeday!