By Angelo Orlando
When should we begin to think about retirement planning? When you are young you may think that you don’t need to start thing about retirement until you are well into your thirties. Or you may say to yourself, “I don’t even have enough money right now to even think about saving for retirement.” Well those days are over and young people should start thinking about retirement well before they think they have to. The fact is today young people should begin thinking about their retirement and saving in their twenties. When you first get out of college and land your first job you may be in a sea of debt. What you should do is begin to pay off your debt, especially the debt with the highest interest charge attached because now you are not paying out all these expenses when in fact you could be saving for retirement. At your first job, enroll in your employers 401k matching program it is available at your place of employment. This is a very good way to save for retirement because your employer matches your contribution with no cost to you. Another benefit of 401k matching plans is that your contribution is tax deductible. Your 401k plan is also tax free and you do not pay taxes on the growth of your account until you cash it in after you are retired. Combining your 401k matching plan with saving in your twenties can lead to a great saving base that will only grow as you get older. Saving for retirement in your twenties and enrolling in a 401k matching plan is a good idea because of the uncertainty involving the social security plan in the future.
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