Make the maximum contributions to your IRA, at the earliest possible age! Do you know that if you contributed $2000 per year into a retirement account between the ages of 18 and 28, and then never invested another penny, your retirement account would grow to almost $1,000,000 by the time you reach 65? Even more remarkable is this: a person who waits until they are 28 years of age before saving $2000 per year, even if they save every year until they are 65, will still not have as much money at retirement as that forward-thinking teenager! This is the Time Value of Money! A single $2000 investment will grow to $1,294,000 in 65 years, assuming that the growth rate averages 10% across those years. The earlier you start saving, the better! But regardless of your age, IRA contributions make sense because they are tax deductible and they grow tax-deferred. If you want to build a substantial nest egg for your future, start making the maximum contributions to an IRA at the earliest possible age, and for everyone, that means right now.
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IRA contributions
Tax Deductible
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