Why 401(k)s and Roth IRAs are a good idea

Retirement. It seems like a far-out concept. Not having to work? How surreal, unreal, maybe even unrealistic. Social Security remains underfunded, which the media has quietly forgotten about during the bad news frenzy that has been the last few years (sad trombone 🎵).

On the one hand there’s the FIRE movement 🔥 (Financially Independent, Retire Early). On the other, older people increasingly want to keep working at jobs they do enjoy. So right now retiring young is super hot, but retiring old is just weird. Forty years from now, will retirement even be a thing anymore?

Let’s validate that it’s normal to tire of the word “retirement.” Forget that for a moment and imagine you’re 30 or 35. You have some cash, good credit, and you’ve started saving for your future. You’re in a pretty good spot and you feel like it too, because your options are open.

Part of that good feeling comes from two key investment accounts:

• The 401(k) that helps you save money on taxes, and that may even include free money (the best kind) from your company as part of employee benefits

• The Roth IRA that is growing tax-free, expanding your future options with money you can still access if you need to, ages before you ever think about the “r” word

Bottom line: 401(k)s, Roth IRAs, and other accounts that are associated with retirement have advantages you can benefit from much sooner than that. See for yourself!