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- Future you called: They want a Nest Egg 🥚
Future you called: They want a Nest Egg 🥚
Plus: newest story + building wealth
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Is Never “Too Early” for a Retirement Plan
In fact, the sooner the better.
Hey, future you will thank you for this one! 🙌
Retirement might seem like light-years away, but starting early is one of the smartest moves you can make. Why? The magic of compounding: Your money earns money, and then that money earns more. It’s like planting a tree that keeps growing bigger every year. 🌳
The following are our honest suggestions, no affiliate links or kickbacks apply.
So… What are your Retirement Account Options?
💡 401(k) Plans
Offered by many employers, with some providing matching contributions (hello, free money 🤑).
Contributions reduce your taxable income today (pre-tax).
👉 2024 Limit: You can contribute up to $22,500 if you're under 50.
💡 IRAs (Individual Retirement Accounts)
Roth IRA: Pay taxes now, and enjoy tax-free withdrawals later. Ideal if you’re in the early stages of your career when your income (and tax rate) is likely to grow.
Traditional IRA: Contributions may be tax-deductible now, and you’ll pay taxes when withdrawing.
👉 2024 Limit: Up to $6,000 if you’re under 50.
Not so fun fact: Only 7.7% of Gen Z currently own a retirement account. If you’re part of the majority without one, it’s time to change that stat!
Hot Off the Press!
Retirement planning is a marathon, not a sprint.
TL;DR…We’ve summed it up for you below! You’re welcome.
The Retirement Savings for Americans Act (RSAA), introduced in 2023, aims to expand retirement savings access by creating a federal workplace retirement plan similar to a 401(k). It would offer tax advantages and investment options like mutual funds, with automatic enrollment for workers without employer-sponsored plans. A federal tax credit would match contributions for lower-income workers.
While the RSAA could benefit those without access to workplace plans, researchers at Morningstar predict it could reduce long-term wealth for many younger workers. Millennials and Gen Z could see their retirement savings decline by up to 12% and 20%, respectively, as private employers may scale back their plans, forcing more workers into government alternatives with lower contribution rates.
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