Invest 15% of Income into Retirement: A Smart Move for Your Future
When it comes to building a secure financial future, few strategies are as effective and time-tested as consistently investing in your retirement. One of the most widely recommended guidelines by financial experts is to invest 15% of your gross income into retirement accounts. While it may sound like a lot at first, especially if you're just starting out in your career, this small step can yield major benefits over time.
Why 15%?
This percentage is considered a “sweet spot” because it balances saving for the future with still having enough income left over for your current needs and goals. It also accounts for potential inflation, market fluctuations, and longer life expectancies. Starting this habit early allows compound interest to work its magic—meaning your money earns interest, and that interest earns interest. The longer your investments have to grow, the more you can accumulate.
401K/ IRA?
There are several ways to reach the 15% mark. If you have a 401(k) or similar employer-sponsored retirement plan, take full advantage of any employer match—it’s essentially free money. For example, if your employer matches 4% of your salary, you only need to contribute 11% to reach your goal. You can also contribute to a Roth IRA or Traditional IRA to supplement your savings.
If 15% feels out of reach right now, start where you can. Even investing 5% and increasing it gradually each year can make a big difference. The key is consistency. As your income grows, so should your contributions.
Retirement may feel far away, but your future self will thank you for starting now. A disciplined, proactive approach today can lead to financial independence and peace of mind tomorrow.
Start now. Start small if you need to. Just start.
RGCU Retirement Savings
It's never to early to plan for retirement! Look into RGCU IRA Accounts to start putting funds away for your golden years. You can help make sure you are financially prepared by adding a Rio Grande IRA to your retirement plan.
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