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The earlier you start, the less you gotta contribute each year to achieve the same results.
Contributions to a Roth IRA are made with after-tax dollars, so youre locking in todays lower tax rates.
Additionally, IRAs are not off limits if youre self-employed.
This is essentially free money and a guaranteed return on their contributions.
Having a cash reserve is essential for your financial health and security, she said.
Having a mix of tax-advantaged accounts ensures flexibility in retirement.
How Much Should They Contribute?
Starting withsmaller, manageable percentagesand gradually increasing contributions with raises or bonuses is an excellent strategy.
Maxing out these limits isnt feasible for everyone, but contributing consistently over time is key, Boggiano said.
Gen Zers are in the perfect position to leverage time to their advantages.
Balancing short-term financial goals with long-term savings doesnt have to be overwhelming, Boggiano added.
Start small, automate contributions, and revisit your plan annually as your career and income evolve.
Taking incremental steps now can lead totremendous financial freedomlater in life.
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