If you’re in your 20s, retirement planning is probably No. 2,515 on your priority list, sandwiched between learning how to build a lawnmower and discovering a planet. However, you’ll hear a lot of people in their 50s and 60s say the same thing:
“I wish I’d planned better for my retirement when I was young.”
It’s not just financed, either, that trip people up later in life when simply walking and maintaining balance is hard enough without the additional mental and material stress of retirement anxiety. Here are things to do in your 20s that will make you physically and financially sounder as retirement nears—when those issues will surely be at the top of your priority list.
The best thing you can do in your 20s is to develop a relationship with a capable, trustworthy, and likable professional financial planner. You may not have a lot of money to invest or save right now, but when you do, you’ll need help making the right decisions because there are hundreds of options—and it can get very, very complicated.
Many young people take financial advice from parents, a rich uncle, a successful colleague, or other well-meaning friends and connections. But this is a dangerous approach. People such as these have the best intentions, but what worked for them may not work for you. There are lots of things to consider in terms of risk tolerance, tax implications, and more. A professional knows how to systematically analyze the variables, and build a short- and long-term financial plan that’s sensible for you, not Uncle Nigel.
Credits: Brad Shorr