So I know a lot of people that read this aren’t in retirement mode but hear me out on this. Even if you are under 30, the best time to start is now. Yes, I know you are young and want to live the lavish lifestyle right now, but small contributions can pay off a lot in the long run.
My first tip is percentages to aim for to stash away each year. So 10% is the bare minimum you should be stashing away each year. 15% is much better but still not the best case-scenario. 20% is what my finance professor recommended when I was in his class. A 20% saving rate will let you live the same lifestyle as you did when you are working. So, by investing for your future you can really have it pay off in retirement.
To really see the effects of percentages and the year that you start, I recommend going to http://www.bankrate.com/calculators/retirement/retirement-plan-calculator.aspx because you can really let the effects sink in. For example, if you start at 25 and average making 50,000 dollars a year, you could retire with 200,000 in the bank at the age of 60. Now also keep in mind that this is not accounting for investment returns, and if your retirement did return around 5% every year, you could have a hell of a lot more money. I think retiring at 60 sounds pretty good to me, doesn’t it to you? So what’s the next step? Set up a saving plan and work hard.
My second tip is choose whether you want a traditional or Roth IRA. I recommend this site to choose which one http://www.rothira.com/traditional-ira-vs-roth-ira . Now that you have this small article in mind, you can start to achieve your financial goals!