3 Essential Retirement Planning Moves to Make in Your 20s
Being young has its advantages. You can play sports without feeling sore the next day, for example. You can also put in a productive day at work on very little sleep. And, more practically, you can lay the groundwork for a wealthy retirement.
Your advantage as a retirement saver is the 35 or 40 years between now and your 65th birthday. Time is a powerful resource for investors. The more time you have, the more your earnings compound.
Time also enables you to build wealth from small monthly investments vs. large, budget-killing monthly investments. As an example, $600 invested monthly for 35 years grows to $1 million, assuming 7% average annual growth. If you only have 25 years to invest, it takes $1,318 monthly to reach that same balance.
Source Fool.com
