You’re so young.

 

You have your whole life ahead of you.

 

Your youth is the hope of tomorrow.

Blah.

Blah.

Blah.

 

What young person today hasn’t had those clichés thrown at them? And even though you may be tired of listening to them, the fact is they are pretty true, especially when it comes building your assets for the future.

 

The truth is, the financial moves you make when you’re younger can help build your dreams for the future. So whether you’re dreaming of driving a fancy car or traveling the world to spend your wealth, here are 5 steps you can take to pursue your goals:

 

1. Save for retirement. Your twenties are the perfect time to save and invest for retirement. By starting now, you have a great ally on your side – time. Save and invest for retirement with a tax-advantaged retirement plan, such as a 401(k) or a 403(b), whatever is available through your employer.  If your employer doesn’t offer a plan, open a Traditional or Roth Individual Retirement Account (IRA) and save on your own. You. Can. Do. It.

 

2. Invest in equities. Though the markets fluctuate, they do, however, offer an attractive benefit – the potential for double-digit returns. For example, from 1951-2016, the S&P 500, a market index based on 500 of the largest U.S. stocks, was 7.4% and roughly every fifth year saw a gain of 23.5% or more. Just keep in mind, however, that investing in equities involves risk, including the complete loss of principal.¹

 

3. Send debt packing. Whether you have credit card or student loan debt, it’s important to make a conscious effort to pay down that debt. It goes without saying (but we’ll say it anyway) the less you owe, the more you’ll have to save or invest.

 

4. Live below your means. Sure having the latest cellphone or the coolest apartment might be great, but spending your money on expensive “stuff” can keep you from working towards your goals. Spending sensibly can help you grow your savings and by extension, your net worth.

 

5. Team up with a financial advisor. With all the investment options available today, saving and investing requires careful planning and decision making. A financial advisor can make it easier for you by helping you determine your goals and choosing suitable options to help you pursue them.

 

Start building your future by taking these important steps today. Do it…while you’re young!

Sources/Disclaimers:

Qualified accounts such as 401ks and Traditional IRA’s are accounts funded with tax deductible contributions in which any earnings are tax deferred until withdrawn, usually after retirement age. Unless certain criteria are met, IRS penalties and income taxes may apply on any withdrawals taken prior to age 59½. RMDs (required minimum distributions) must generally be taken by the account holder within the year after turning 70½ . The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax.

The S&P 500 is an unmanaged index and cannot be invested into directly. Past performance is no guarantee of future results.

This material was prepared for [Name] and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.