How to start planning for retirement in your 20
When you're just starting out in your career, retirement seems like there's really nothing to worry about in the future.
Just the thought of getting married, buying a home and starting a family already sounds like a financial mountain, and more within your realm.
Compound interest is probably the most important concept to understand for retirement planning in your 20s. Because the more time you invest, then even a small amount can have a big impact.
Make sure you find a company that matches your 401(k) contributions when you're looking for a job. Especially in your 20s, it maximizes your investments with less risk of your own.
An automatic contribution to your retirement account, no matter how small, is one of the best ways to start retirement planning, where compound interest is the name of the game.
All retirement accounts have fees, even if they are half a cent. Make sure you at least cover the amount of the fee so that you have the active principal invested.
When you start planning for your retirement, remember the old saying by investor Warren Buffett: "Don't save what's left after you spend, spend what's left after you save."
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