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What are you doing to prepare yourself for retirement? If you're reading along, what tips have you found helpful from “Napkin Finance?”

I don’t know about you, but I wish I had a time machine to send me back about a decade so I could get an earlier start on saving for retirement. I struggled with money in my 20s and didn’t have enough financial savvy to truly grasp the importance of starting at a young age.

“Napkin Finance” is one of those books that people of all ages should get their hands on. It highlights why you should start contributing to retirement accounts as early as possible. Hint: You want to give your money more time to grow! (But if you aren’t in your 20s, we’ve broken down how to save for retirement at any age.)

Though I can’t go back in time, what I can do is increase my retirement contributions and adjust my asset allocations so I’m investing more in stocks, which typically offer greater returns than bonds.

In case you missed it, here's a link to the thread on budgeting that we started last week.

NapkinFinance-IRAvs401k-Napkin-02-26-2018-v06

**Writer at The Penny Hoarder. All opinions expressed are my own and don't necessarily reflect the views of The Penny Hoarder.**

Last edited by Theodora
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I  still don't have my copy of the book yet, but  I can speak to retirement planning.  I retired early 2.5 years ago. While I don't regret my decision,  I could have been better prepared .One way I could have achieved this would have been to roll over 401k balances when I left a job instead of sometimes cashing out.😚

Most important thing is to start AS EARLY AS POSSIBLE on ALL of the below:

  • Take advantage of any pre-tax company 401K, especially with company match. Alternative IRA post tax contribution with tax free growth.  Very little is more advantageous than leveraging government approved tax incentives.
  • Pay down any debt as soon/fast as possible (nothing is more expensive than debt, especially credit card debt.).  Debt is hindering your ability to save.
  • Save as much as you can regardless of income (always live below your means and save and ignore what you believe everyone else is spending money on)
  • Take whatever savings you have and invest it for the long run in the market (not your bank account).  You must take advantage of compound growth and have your money begin to work for you so that you eventually don't have to. Leverage time and these savings will hockey stick in size over time!
  • As much as possible, automate all the above processes so that it actually happens and so that your money is removed from your visibility/ability to easily spend it on other things.

I'm taking part in a 401(k) through work. I also have two Roth IRA's, one of which I'm actively contributing to. One is through Acorns, a robo-investing company. I'm woefully behind, however, since I had to withdraw all of my previous funds due to medical issues. So, it's a struggle for sure, but I'm trying to make up for lost time. For reference, I'm in my mid-40's.

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