Retirement Planning Tips for Graduates

For many college students, graduation is just around the corner! This is an exciting time in their lives as they prepare to venture into the workforce. However, many must face the realities of having to pay back costly student loans. Because of this, it is more difficult for young individuals to plan for retirement. Investopedia shares some advice on how graduates can still plan for a financially stable future.

1. Be a smart spender. 

Discipline is key! Ask yourself if you really need that concert ticket or expensive shirt. Remember that saving starts here; it's okay to splurge every once in a while, but you must also keep in mind that even the smallest contribution can go into a retirement or emergency fund.  

2. Consider opening a 401 (k) or Roth IRA.

If you are a recent graduate who has landed a job with a company, do not be afraid to ask if they match 401 (k) contributions. If they do not, consider opening up a Roth IRA. Even investing $10-$20 every paycheck can make a huge difference when building your retirement plan. However, keep in mind that if you are under 50 years of age, you can only contribute up to $5,500 per year.

3. Know all IRA rules. 

If you have an IRA, try not to withdraw funds before you turn age 59 1/2. Investopedia mentions that this could result in taxes owed or penalties. Additionally, look at your company's policy for 401 (k) matching.

Investopedia discusses more on how graduates can slowly start planning for retirement. Remember to speak with a financial advisor to ensure you are making the right decisions for your financial future. Every dollar counts! 

Visit Investopedia for more information: https://ow.ly/8Ewt30mliqH 

How has this helped you plan for retirement? Share in the comments!