Why you should start a retirement account

Starting a retirement account doesn't seem like an immediate savings because it's money that's coming out of your pocket, but investing in retirement can help save on your taxes, and participating in a retirement savings employer program that matches dollar for dollar, or even 50% of what you contribute, is like giving yourself a raise. Someone in their 20s who saves $200 per month for 20 years would have $123,567 by the time they reach age 65 (with a conservative net growth rate of 3%). Using the same metrics, if you wait until age 40 to save the same amount for 20 years yields only $68,416 at retirement. Every little bit helps!