It’s Never Too Early to Begin Retirement Planning

Graduating from college and entering the workforce can be stressful. As you are working to kick off your career, the last thing on your mind is retirement planning. However, it’s wise to start thinking about the future and planning for your retirement as early as possible. There are several benefits to planning early, including having more savings ready for your retirement once the time comes.

Ideally, you should start saving for your retirement in your twenties. This time of life generally offers the most flexibility and chances to save. By the time you start building a family or taking your career to the next level, you could have quite a bit saved.

Start Saving Now

The most important tip for retirement planning is to start as soon as possible. The sooner you start adding money to your savings accounts, the more interest they will accrue over time. You have several options for saving, including retirement plans, Roth IRAs, or simple savings account with agreeable interest incentives. It’s also a wise idea to have an emergency fund set aside for unexpected expenses. This will allow you to avoid using credit cards or your retirement savings to handle emergencies.

Diversify Your Investments

The old adage is true: you don’t want all of your eggs in one basket. You don’t want to hinge your retirement on a single investment, either. A savings account with compound interest is fantastic, but diversifying your investments opens up several opportunities to save for retirement. When you’re young you can afford to be a bit more aggressive with your investments, so work with a professional to create a balanced portfolio with a healthy measure of risk.

Take Advantage of Employer Benefits

If your employer offers you the opportunity to join a 401(k), you absolutely should. Not only will the money you deposit into your 401(k) come out before taxes, saving your money, but most employers will match your contributions to encourage employee participation in the program. This year, the maximum pretax contribution you can make is $18,000.

These are just a few examples of ways to start planning for your retirement. Remember, the most crucial advice for retirement planning is to start doing it as soon as possible. Consider these benefits to starting early and start making your retirement plans today.

Macino Financial
The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. State registration is not an endorsement of the firm by the Commission and does not mean that the adviser has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss. Changes in investment strategies, economic conditions, contributions or withdrawals may significantly alter a portfolio’s performance.

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