Your recent grad just entered the workforce, but it’s never too early to start saving for retirement. The sooner he thinks about long-term saving, the more his account could potentially grow in the decades ahead. You can use the example of how you saved for his 529 education savings plan!
Jump-start this conversation by asking if there is a 401(k) or similar retirement plan available at the new company. Contributing to an employer’s tax-advantaged retirement plan may be the easiest way to get started on retirement savings. And taking advantage of an employer match is like getting bonus money simply for participating in the program.
If your child doesn’t have access to a 401(k) plan, he can still contribute money to an individual retirement account (IRA). Even if it’s just a little bit, he has so much time ahead of him, he’ll be way ahead of the game when many of his peers will probably be playing catch-up.
Starting a new career, moving in to his own place, thinking about future plans … it’s all part of being a grown-up. Reassure him that you’re there to guide him or simply listen as he develops that all-important independence.