Two-thirds of millennials in retirement plans joined because their employers enrolled them automatically when they started, she wrote in a 2015 Vanguard report . You dont even have to pick your investments. You can choose a target-date fund based on the year you plan to retire, which will reduce the risk in your investments as you age. If you cash out before you retire, though, youll pay major fees and lose out on years of growth. http://eliwellshome.khmermerchant.com/2016/08/03/the-latest-on-prudent-vocation-strategies/Unless it is truly your undying passion from birth, dont take that money out of your 401(k) to buy a boat, says Timothy LaPean, a financial planner in Minneapolis, Minnesota. No 401(k)? Fly solo with an IRA A 401(k) is great if youve got one, but less than half of full-time employees ages 18 to 29 have the option to contribute to workplace retirement accounts, according to the Pew Charitable Trusts . If your company doesnt offer a 401(k), or you work part-time or freelance, youre on your own but youre not without options. Young folks like you often opt for a Roth IRA , a retirement account you can set up online or through an investment broker or an automated financial adviser (often called a robo-advisor). As long as you earn taxable income thats less than $132,000 annually as a single person, you can put away up to $5,500 a year and watch it grow the longer you let it sit there. Because a Roth IRA is a long-term savings account, not a Caribbean vacation fund, youll be rewarded for waiting it out with the ability to withdraw your money tax-free after age 59.
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