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Its not how much you make, how you invest or even which plan you choose.
Not Enrolling Earlier
The biggest advantage of a 401(k) comes from starting early.
Thats why waiting even a few years can seriouslyreduce how much youll have in retirement.
And if you put this off, youre missing priceless time in which your money could be growing.
However, it is early savings in ones twenties that will earn the most compound interest.
You earn interest not just on your contributions, but also on whatever interest they earn.
But a thirty-five year old would have to invest $12,649 per year.
Thats already a huge difference in just ten years.
By the time youre forty-five, you would need to invest $27,185 per year.
Save Early
You dont have to contribute a lot to benefit.
What matters most is starting as soon as possible.
Even a small percentage of your paycheck each month could grow immensely over the span of decades.
And it doesnt have to be all-or-nothing.
The most important thing is to start earning compound interest as soon as you possibly can.
You cant earn interest on money that was not saved, ONeill added.
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