Why You Should Start Retirement Planning in Your 20s

body{-webkit-animation:-amp-start 8s steps(1,end) 0s 1 normal both;-moz-animation:-amp-start 8s steps(1,end) 0s 1 normal both;-ms-animation:-amp-start 8s steps(1,end) 0s 1 normal both;animation:-amp-start 8s steps(1,end) 0s 1 normal both}@-webkit-keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}@-moz-keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}@-ms-keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}@-o-keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}@keyframes -amp-start{from{visibility:hidden}to{visibility:visible}}body{-webkit-animation:none;-moz-animation:none;-ms-animation:none;animation:none} h1, h2, h3 { font-weight: normal; } amp-story-page { background-color: #131516; } amp-story-grid-layer { overflow: visible; } @media (max-aspect-ratio: 9 / 16) { @media (min-aspect-ratio: 320 / 678) { amp-story-grid-layer.grid-layer { margin-top: calc((100% / 0.5625 - 100% / 0.6666666666666666) / 2); } } } @media not all and (min-resolution:.001dpcm) { @media { p.text-wrapper > span { font-size: calc(100% - 0.5px); } } } .page-fullbleed-area, .page-background-overlay-area { position: absolute; overflow: hidden; width: 100%; left: 0; height: calc(1.1851851851851851 * 100%); top: calc((1 - 1.1851851851851851) * 100% / 2); } .element-overlay-area { position: absolute; width: 100%; height: 100%; top: 0; left: 0; } .page-safe-area { overflow: visible; position: absolute; top: 0; bottom: 0; left: 0; right: 0; width: 100%; height: calc(0.84375 * 100%); margin: auto 0; } .mask { position: absolute; overflow: hidden; } .fill { position: absolute; top: 0; left: 0; right: 0; bottom: 0; margin: 0; } @media (prefers-reduced-motion: no-preference) { .animation-wrapper { opacity: var(--initial-opacity); transform: var(--initial-transform); } } amp-story-grid-layer.align-bottom { align-content: end; padding: 0; } .captions-area { padding: 0 32px 0; } amp-story-captions { margin-bottom: 16px; text-align: center; } amp-story-captions span { display: inline-block; margin: 0; padding: 6px 12px; vertical-align: middle; border-radius: 15px; background: rgba(11, 11, 11, 0.6); color: rgba(255, 255, 255, 1); font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Oxygen-Sans, Ubuntu, Cantarell, "Helvetica Neue", sans-serif;; font-size: calc(4 * var(--story-page-vw)); line-height: 1.4; word-break: break-word; word-wrap: break-word; overflow-wrap: break-word; } Why You Should Start Retirement Planning in Your 20s [{"selector":"#anim-c6c28a40-d0d4-4c02-9932-9b2879260ff4","keyframes":{"opacity":[0,1]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-e138f73a-d114-489b-abba-fe4dbd5e99f9","keyframes":{"transform":["translate3d(0px, -99.3561%, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-30cb9419-588f-4b01-8bd8-1b7bbefe2191","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-e2293e88-edef-4c92-8173-3fb546e3d13d","keyframes":{"transform":["translate3d(0px, 190.67321%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Why You Should Start Retirement Planning in Your 20S

Learn more[{"selector":"#anim-219c84aa-9e7d-41b8-80d8-704ffd5fe091","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-36bccef6-14be-4500-8ef4-fb8c06fa4351","keyframes":{"transform":["rotate(-41deg) translate3d(0px, -68.33437%, 0) rotate(41deg)","rotate(-41deg) translate3d(0px, 0px, 0) rotate(41deg)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-1eb87a76-33e7-442c-9a16-c7a742e2f922","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

When you’re starting your career in your 20S, the last thing on your mind May be the end of your career and the retirement that comes after. But thinking about retirement now can ensure your financial security in the future.

Learn more[{"selector":"#anim-f51646d2-eb8e-434d-bf9e-cc8d59b677c6","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-f9093491-e11a-4516-b27d-d720ae1acf6e","keyframes":{"transform":["translate3d(-117.26619%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-a9012d83-2d05-4955-a111-aaeaeff13a32","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-f3028f36-1726-4d83-9546-8e8c99b30b96","keyframes":{"transform":["translate3d(-113.79311%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-4c4d7fa5-cb87-4d7b-9f76-de9f8dd841b3","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}][{"selector":"#anim-c1a1c6a7-c3ec-4608-b46f-53b44e652117","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-70924a71-1540-4690-978d-a2f903b374a6","keyframes":{"transform":["translate3d(99.72603%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Step 1: Calculate how much you need to save

Opening a retirement account begins with setting a goal. Consider your target retirement date and how long you’ll expect to be retired based on current life expectancy.

Learn more[{"selector":"#anim-467a223c-283c-4a8d-bed0-b16b104c37bf","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}][{"selector":"#anim-5b196c4a-dc0f-49f6-99a8-2586da58c66b","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-d1946e41-f397-4ebe-9bc9-41ea7be3086d","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-9c77a42b-93f7-49b6-9a6f-b217ee7692bb","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-a68baa80-bc03-4ab0-aaf8-47963cdf74f9","keyframes":{"transform":["translate3d(-113.64985%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-da22431c-82bc-4757-9983-d247e301e9b2","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-fdf24f76-9588-4512-ac20-c66955902045","keyframes":{"transform":["translate3d(-116.47058%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Step 2: Choose a savings vehicle

Keep in mind that investments in equities or other securities are more risky than savings accounts, which allows for the possibility of better returns. Still, young investors can typically take on additional risk, since they have time to recover after a market decline.

Learn more[{"selector":"#anim-053a1159-a570-4300-9b5f-c6df97442c1a","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-b0af7b8e-cd95-4145-bd62-daeb2391882e","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-662aaf83-c63e-4501-9751-2597927cb6ff","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-3596dc97-d414-4bc5-b34e-3b0726c2c7c6","keyframes":{"transform":["translate3d(-115.2381%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-6fbba879-a056-448f-994b-9b8fb7dab005","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}][{"selector":"#anim-df9f09ef-fa90-4a0e-8993-adf4f3e043e9","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-bbd5ce27-e7d4-4e88-bf79-2ac690493d97","keyframes":{"transform":["translate3d(99.72603%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Step 3: Start investing

Once you’ve opened an account your investment strategy depends on age, goals, time horizon and risk tolerance.

Learn more[{"selector":"#anim-dbfe4684-1245-4a7b-a8b5-9c926a67baf4","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}][{"selector":"#anim-a4e56fe1-4d6b-44cc-b816-af1ee1fe82eb","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-ee13f6c8-431f-4ecd-967d-dbd69437af7a","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-634ea6a5-b0f5-4745-b827-3ff66b89266d","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-3ab871aa-2a0d-4eb8-a05b-3fdf063ff3b5","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-9a72e275-6490-42ec-8f8b-b3113724c5df","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-b4d6ee88-b19e-48c7-8116-c7ad2681f205","keyframes":{"transform":["translate3d(-115.2381%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Types of retirement plans

401(k) A 401(k) is an employer sponsored retirement account, meaning you invest in it through your workplace, if your employer offers it.

Learn more[{"selector":"#anim-81f4fbaa-0525-4587-9f00-d38c35385416","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-0fec84c3-d9fc-4e42-95dd-7314bdfc997f","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-cba34903-0dc4-4297-acf8-db873c3826ca","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-b3f87e01-99ce-4f0f-b8e2-b8e1154fcbc4","keyframes":{"transform":["translate3d(-115.2381%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-27452e39-66ee-456b-9d8f-bb56eb44b486","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}][{"selector":"#anim-d84d6772-989f-47a7-b293-49948ae3076f","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-10d06e4e-ea78-4a5a-91c9-cf713aa46bd3","keyframes":{"transform":["translate3d(99.72603%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Traditional IRA

Traditional IRAs are not offered through employers. Anyone can open one as long as they have earned income. Depending on your income and access to other retirement savings accounts, you may be able to deduct contributions to a traditional IRA on your taxes.

Learn more[{"selector":"#anim-2090df3d-5a2c-4294-b082-e49124dae103","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-f2cd68d4-b0cc-4b4e-8079-4cb7229821ef","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-578b7db2-571f-497b-adc2-ed2a26a70f6c","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-aa2bf171-4ffd-4fce-ac60-3a13fb0cfa11","keyframes":{"transform":["translate3d(-114.81482%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-4c1216ad-6beb-435e-a8fa-93fcf7bad01b","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}][{"selector":"#anim-024a92bb-b9c0-4aa1-84af-d084e40842ff","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-8760d2df-0416-48e2-84a8-f6ded79b1cfb","keyframes":{"transform":["translate3d(99.72603%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Roth IRA

Unlike 401(k)s and traditional IRAs, savings go into Roth IRAs with after-tax dollars and provide no immediate tax benefit. However, money inside the account grows tax-free and it isn’t subject to income tax when withdrawals are made after age 59 ½.

Learn more[{"selector":"#anim-9db0d57e-0947-4774-8d89-241c07a551b1","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-78b5b434-ae90-4b0f-8c28-a26385b8b712","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-589c37b7-565a-409d-ad44-17604e1ff531","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-52fe9e96-4232-403d-8481-21db335765f5","keyframes":{"transform":["translate3d(-114.81482%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-b3295071-81d6-4b61-8d50-b66d4638d82f","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}][{"selector":"#anim-16bd1d2e-6ea1-49d5-b305-a64835bff57b","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-998e5cfe-57e9-47f0-b2a4-4d7200b3a489","keyframes":{"transform":["translate3d(99.72603%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Retirement plan strategies

The investment strategy you choose will depend largely on three things: your goals, time horizon and risk tolerance. These factors will help you determine your asset allocation, what types of assets you hold and in what proportion.

Read The Full Article[{"selector":"#anim-59bbd5e2-b65b-49e0-acb5-f44f4b653335","keyframes":{"opacity":[0,1]},"delay":200,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-52aa7f5e-b14d-4ea3-ba91-8114090eab76","keyframes":{"transform":["translate3d(0px, -176.91705%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Swipe up to read more on why you should start retirement planning in your 20S!

Learn more[{"selector":"#anim-6bd6bfbf-7fa6-4dfd-bb7b-68b370aabe6b","keyframes":{"opacity":[0,1]},"delay":0,"duration":1600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-f5c85a8f-e9ca-483d-956d-46fb694f5611","keyframes":{"transform":["translate3d(0px, 99.59280%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-343e8851-2641-496e-abcd-d44811dc5a0c","keyframes":{"opacity":[0,1]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-c4c28533-54ef-4cec-8218-783509c38bfe","keyframes":{"transform":["translate3d(0px, 871.75821%, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-ff50d3f4-437e-47c4-89fc-de07acf2c4fe","keyframes":{"opacity":[0,1]},"delay":200,"duration":1600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}][{"selector":"#anim-164cc306-9433-4b64-b58b-ee3070bf7d70","keyframes":{"transform":["translate3d(0px, 245.65966%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]