Building a Strong Financial Foundation
Young adults in their 20s who are in a position to save money have a unique opportunity to enter the world of investing at a time when doing so can maximize its long-term financial impact. Thanks to the power of compounding gains, money invested in your 20s can achieve much more significant growth over the remainder of a lifetime than investments started later on.
At just an annual 4% return, not counting inflation, a single dollar invested at age 20 would grow to $5.84 at age 65, while a dollar invested at age 30 would only be worth $3.95 by retirement age. Because young people today may expect to spend 20 years or more in retirement, every extra dollar saved counts.
Key Takeaways
- Investing in your 20s can have significant…
