RICHMOND, Va. (WWBT) - You raised a child to an adult, and they are about to get their first real job. So, what’s the best advice you can give? It’s pretty simple - tell your child to put money into an IRA or 401K right away.
Before they ever get that first paycheck, make sure they are putting money into one of those accounts. The earlier you do this in life, the better off you’ll be by retirement age. And if your child is diligent about this, they could retire a millionaire.
Michael Joyce with Richmond Financial firm Agili, says it’s what he told his own children.
“I told them to put 10% of their paycheck right into the 401k plan because they’re never going to miss it. They’re going to get some of the pretax benefits and they will start building that,” said Joyce.
If 10% is too steep, shoot for 5% and add a percent each year or whenever you get a raise. Long-term financial security is truly the best advice you can give.
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