How to Set Yourself Up for Retirement: Start Saving in Your 20's
Starting to invest in an IRA account while you are young can add up to hundreds of thousands of more dollars than if you start later in life. I know it may seem crazy as a college student to be thinking about the last money you will ever need while you are just starting to earn your first money. Young adults tend to focus on the present; when is my next exam? What am I going to do this weekend? But focusing too much on the present can have a negative impact on your future.
Saving early is an important factor in setting yourself up for retirement. The sooner you start saving the more compounding your money will partake in throughout your life. Time is your best ally when it comes to investing. Let each year’s gains generate their own gains the next year. If you take a small deferral from each paycheck, you will hardly realize it in the present, but it will be highly beneficial on the back end.
I will start by explaining that many young adults are not focused on saving for retirement, when in truth, this is the most crucial time to be thinking about investing for retirement. I will give examples that young adults will be able to relate to. I will then move on to stating why it is important to start young. Things such as compounding interest, an early and stress-free retirement, and the lump sum you will have by starting earlier will be of main topic. I have numerous graphs and charts showing the difference of someone who starts saving in their 20’s to someone who starts saving in their 30’s. Some of these graphs will show just how much a slight deferral each month can rapidly grow into a huge pot at the end of your career. I will then reiterate my points of why saving for retirement early is a huge factor in how comfortable you will be later in life.
The goal of my presentation is to grab awareness of how much of an impact beginning to save early in your life can have on your future financial status. I want to open my audiences eyes and convince them that they should open an IRA account and start stashing some money away so that it can start compounding sooner than later.