I Maxed Out my Retirement in 2023, Here’s What I Learned
You can do this too
Retirement is something many people dream of.
No work. No stress. Just peace.
I want to retire one day. But to do that, I need to prepare.
The preparation for retirement takes many decades.
Intentional investing over a long period of time creates long-term wealth.
The idea behind retirement planning is that time is your friend.
Without proper planning, retirement can be out of the question.
However, let’s dive into what I did in 2023.
Let’s start with this
I have a Roth IRA. This is different compared to a Traditional IRA.
Traditional IRA’s tax the money when you withdrawal it while Roth IRA’s tax the money up front when you first put it into the account.
In 2023, I was able to contribute $6,500 towards my retirement.
This is a great step because it allows time to work for me.
You see, I am only 21 years old.
Time is on my side.
I won’t be able to touch that money for nearly 40 years…
That’s a long time!
Grow, Grow, and keep on Growing!
Locking up that money into my Roth IRA allows me to not be able to touch it until I reach a certain age.
When I am 59.5 years old, I will be able to withdrawal money from that account without a pentaly.
If I withdrawal the money sooner than that, I would encounter a penalty for not waiting until I am 59.5 years old.
Be bold while you are young
When you are young, you can take bigger risks.
By locking up $6,500 into retirement at 21 years old, I risk never being able to touch that money again.
What if I pass away before I’m 60 years old?
I might never see a dime of that money ever again.
That’s the risk I’m willing to take for my future.
That $6,500 could go towards current expenses.
But no! I care about my retirement and investing in my future.
What are your thoughts?
Was this a good move?
Would you do something differently?
Let me know in the comments below.
Until next time,
— Donny
