Did you know that the 401(k) retirement savings program turned 40 on Election Day? This provision from the 1978 Revenue Act has become the foundation of retirement planning. And the 401(k) continues to be the most common tool to save for retirement. Anyone who collects a paycheck should take advantage of 401(k) savings, and with the cost of living continuing to rise, saving early can make all the difference when it comes time to retire.
We all need to plan for retirement, and it’s never too early to start. Everyone should be disciplined about saving, and although putting money in a savings account is always a good idea, you want to consider long-term strategies as part of retirement planning. Putting money into a 401(k) plan, a Roth individual retirement account (IRA), or a Traditional IRA as part of retirement planning is smart, but it’s important to understand the similarities and differences between each.
Do you remember being 10 years old, seeing adults walk by, and thinking, “Man, they look so put together. They must have everything figured out.” BUZZER SOUND. WRONG. Now you’re the adult, and let’s be honest: Everything is not figured out. In fact, as a 20-something, your adult life is just beginning. At 10 years old, you must have thought turning 20 was light-years away. Well, here we are. The same thing goes for imagining yourself as a 60-year-old. It feels like forever away, but eventually, it will happen—no matter how much kale you eat, how much yoga you practice, or how many night creams you apply before going to bed. There’s no way to avoid aging, but you can dodge financial troubles in the future if you start planning for retirement now. Like, right now. Not tomorrow. Now.