If you’re just getting your career off the ground, thinking about retirement four decades from now is probably the last thing on your mind. But if you’ve put it front of mind and are ready to start saving for retirement, congratulations! You’re well on your way to financial freedom.
That’s because you’ve got the most powerful, wealth-building asset on your side: time. With the power of compound interest, your contributions will earn more than your peers who wait until their 30s or 40s to start saving for retirement. That’s why it’s key to start saving for the future as soon as you can.
Of course, wanting to save for retirement and doing it are very different things. When you’re just getting started, it’s easy to feel intimidated by the confusing alphabet soup of terminology — 401(k), 403(b), IRA, Roth, HSA and so on. But don’t let jargon throw you, it’s much easier than meets the eye.
So, to help you get started, let’s demystify saving for retirement.