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Someone missed two big wins in their 20s: not opening a Roth IRA when their income was low, and waiting until nearly 30 to buy stocks instead of bonds. Low income years are the time to lock in tax-free growth.
Someone missed two big wins in their 20s: not opening a Roth IRA when their income was low, and waiting until nearly 30 to buy stocks instead of bonds. Low income years are the time to lock in tax-free growth.
One saver says their 20s included retirement blunders that still sting. First regret: they did not pick the right retirement account for their situation. With low income then, they say, a Roth IRA would have made more sense. The trade-off they missed: tax-free growth and tax-free withdrawals in retirement. Second regret: they did not start investing in stocks until almost age 30. They chose bonds while saving for a house, but say stocks could have paid off. Use your 20s to match the account to your taxes and invest with patience.
