SALT LAKE CITY — You may be young, having fun and living your best life, and while you're working a full-time job, retirement may be the last thing on your mind. Unfortunately, retirement comes up quickly, and when youth is on your side, it's the best time to start preparing for your golden years.
Saving when you are young is an advantage when it comes to building wealth for retirement because it gives time to maximize the power of compound interest — a way to save a little now and reap big rewards later, whether it's in the form of a 401(k), Roth IRA, CD or through the stock market.
Dave Nellis at America First Credit Union shared how young people entering the workforce have a huge opportunity.
"The time to start saving for retirement is when you start working, so out of college or when you graduate from high school, those are the times where you need to have the good principles of saving money and putting some money to yourself because eventually you're not gonna be earning an income and you wanna have that money," Nellis said. "So develop those skills at an early stage. It's never too late to start ... commit now."
Three things Bankrate.com suggests to do immediately when starting to work full-time is to open a Roth IRA, contribute to an employer-sponsored 401(k0 and start putting money away in an emergency fund.
If it sounds a little overwhelming and you need guidance on how to start saving for retirement, don't overlook a credit union or bank. Most often, they provide free financial planning counselors if you have an account through their institution.
Another thing, even if you have been in the workforce for a while and you haven't made retirement savings a priority, it is never too late to start saving smarter.
