5 Smart Ways to Save for Retirement in Your 20s and 30s
5 Smart Ways to Save for Retirement in Your 20s and 30s Starting retirement savings in your 20s and 30s might not feel urgent—after all, retirement could be 30, 40, or even 50 years away. But this is actually the most powerful time to begin, thanks to the magic of compound interest. The earlier you start, the less you need to save each month to reach your goals. Here are five smart, practical ways to build a strong retirement foundation early in life. Contribute to Your Employer’s 401(k)—Especially If There’s a Match If your job offers a 401(k) or 403(b) plan, sign up immediately. Even contributing a small percentage of your paycheck makes a difference. Most importantly, contribute enough to get the full employer match—this is free money. For example, if your employer matches 50% of your contributions up to 6% of your salary, aim to contribute at least 6%. That’s an instant 50% return on your investment, unmatched by almost any other financial move. Open a Roth IRA and Max It Out If Yo...