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Yes, You Need a 401(k) in Your 20s — Here’s Why

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Even before the first paycheck from your first full-time job hits your bank account, you should be planning for the day you’ll receive your final paycheck.

You may be thinking: I just began working. Do I really need to start thinking about retirement now?

The answer is yes. It’s far better to contribute some money to your company’s 401(k) — even if it’s a seemingly trivial amount each month — than to do nothing. Don’t have a 401(k)? An individual retirement account offers some of the same advantages, but you can open one without employer sponsorship.

Not convinced about the benefits of a 401(k)? Here’s why you should contribute to one, or to another retirement savings vehicle, when you’re young — and some tips on how to do it right.

Why...

Continue reading on www.nerdwallet.com

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