Life Kit: Money How to start saving for retirement
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Sep 24, 2024 
Michelle Singletary, a savvy personal finance columnist from the Washington Post, shares her insights on retirement planning. She emphasizes the importance of starting to save early, likening it to learning to swim as a child. The magic of compound interest is a key theme, showing how small, consistent contributions can grow significantly over time. Singletary advocates for using retirement accounts like 401(k)s and IRAs, promoting automatic contributions and proactive financial management to ensure a secure financial future.
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Power Of Compound Interest
- Compound interest lets early contributions grow exponentially over decades.
- A small amount saved in your 20s can become hundreds of thousands by retirement with market returns.
Raise Your Default Contribution
- Increase your employer default contribution gradually so it actually funds retirement.
- Check what you're invested in and raise the percentage one point per year until you reach your goal.
Automate Your Savings
- Use automatic payroll deductions or scheduled transfers to make saving consistent.
- Participate in an employer plan if available and set up automatic deposits to an IRA if not.