Whether you’re still in school or have just recently landed your first “real” job, one fact remains: it’s never too early to start saving for retirement. In fact, the earlier you can get started setting even a small amount of money aside, the better off you’ll be when you near retirement age. At Greenberg Financial, we specialize in helping people just like you get a head-start on their retirement savings and Tucson financials, providing you with the resources you need every step of the way.
By contributing to a retirement fund early on, you can take full advantage of all the tax breaks, credits, and deductions that are available to you. This is especially true if you’re contributing to an employer-sponsored retirement plan, as these accounts are almost always tax-deductible. This means you can reduce your total tax burden at the end of the year, saving yourself some of your hard-earned money while also setting aside some money for retirement. It’s a win-win!
One of the most important reasons to start saving for retirement early is to utilize the power of compounding interest when it comes to creating wealth. You see, even if you’re only setting aside a small amount each year (especially while you’re first “starting out” and getting your finances in order), that money will compound over time. Compound interest on a retirement account can add up to thousands—or even tens of thousands—of dollars over the decades that your account will be open.
While it’s true that retirement accounts are not designed to be “dipped into” before you reach retirement age, having a nest egg set aside can give you some added financial peace of mind. In the case of a serious emergency, you will have the option to dip into your retirement savings if you need to, although you can expect to face some penalties for doing so. Hopefully, you won’t have to take money out of your retirement account until you’re at least in your 60s; if a dire situation arises, however, you’ll be glad you have this fund to fall back on.
You might be surprised at how much of a difference starting early with your retirement savings and investing can make. Because of the compounding interest you’ll enjoy, you may even find that you’re able to retire earlier than you originally planned.
At Greenberg Financial, we know all the ins and outs of planning for retirement—and we know all too well that saving for retirement starting at a young age is always a recipe for success. Even if you don’t feel like you have much to contribute to a retirement account right now, the key is starting. And of course, our experienced and knowledgeable team is here to help you make the right decisions. Contact us today to find out more about how we can help with your Tucson retirement plan!
Sources
https://greenbergfinancial.com/
www.moneyunder30.com/power-of-compound-interest
https://www.thebalance.com/an-introduction-to-tax-deductions-and-retirement-planning-2894618
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