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Top five retirement tips for young people

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It's never too early to start planning for your retirement. The earlier you plan for retirement the more likely you are to be able to live a comfortable life and support your family once retirement time comes. Developing a solid retirement plan is crucial, and it can be done by anyone if they simply stay disciplined.

Top Five Retirement Tips for Young People

  • Avoid Investing Fees and Expenses. Fees that may seem quite innocent over the short run really end up hurting a retirement portfolio in the long run. Fees and expenses that eat away at your overall return need to be minimized. Loaded funds must be avoided and mutual funds with high annual expenses are a big problem.
  • Invest Tax Efficiently. Take advantage of things such as the Roth IRA or the Traditional IRA and avoid investments that will hurt you tax wise. Depending on your individual situation a Roth IRA may be better because it offers tax-free withdrawals during your retirement.
  • Understand the power of compounding returns. It is important to understand just how crucial compounding your returns can be. An individual that understands just how beneficial compound returns is will be an individual that gets started with their retirement planning early!
  • Plan on Retiring Later. Don't set your retirement goals on retiring at a young age. As time continues to go by the retirement age is <a href="http://www.ssa.gov/pubs/ageincrease.htm">being pushed back</a>, and don't expect that to change anytime soon. You'll be making a pretty large mistake if you decide that you should plan on retiring young, since it probably won't be a valid option.
  • Take Full Advantage of Company Matching. Employer matching 401k plans are one of the best deals you will ever get. An individual who takes full advantage of the maximum company match will be way ahead of the pack.

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