I’ll be honest, when I think of IRAs and retirement, I think of old, dry (white) men in gaudy Hawaiian shirts discussing the elusive “market” as they tee off somewhere in Palm Springs.
That’s because we’ve painted the stock market as this mysterious and exclusive place for a certain echelon of America to bask in their wealth.
Y’all, this couldn’t be farther from the truth.
By 21, I had $10,000 saved from college refund checks and cash from working as a three-star server at Cracker Barrel. I had NO idea what to do with all this coin.
After months of research from books, blogs, and banks, all signs pointed at that fancy invest word.
No one in my family invested, but everyone in the financial industry said it was a key component to build wealth. So I thought, If they can do it, why can’t I?
Easier said than done.
Undeterred, I walked into the bank I had a checking account with and sat down with an investment advisor, who was the first person to take me seriously. He explained the investing process, and which types of investments worked best for me at that stage in my life.
From there, I started a Roth IRA and a general investment account. Since having the Roth IRA, I have seen it grow well beyond the $5,500 I pledged to contribute every year.
(Pst: That’s why we created an easy guide for investing you can read here.)
Retirement can happen anytime.
Instead of your paychecks coming from working on someone else’s clock, your checks come from the stock market (or other types of passive income).
Start saving NOW.
Let’s do some math: If you’re 25 and save $20 a month over twelve months, 12×20 equals $240 a year.
$240 per year for 40 years (when you turn 65) is $9600—and that’s without the benefit of interest.
Add the average stock market return of 7 percent and you’ll have a whopping $51,000—much of that money you didn’t have to work for.
(Did you know the Nav.It Money app has an automated savings feature?)
But what if I lose all my money?!
However, over the long term, you will earn more than you lose as long as you stay consistent. Ignore the hysteria from “experts” in custom Italian suits and keep doing whatever you’re doing.
The calamity in 2008 will be a blip in time in 2050 when it’s time to cash out and live on your #rockafellerstatus.
Follow Ashley on Instagram @stacksnthecity.
We’re changing the narrative around money but change can’t happen with a one-sided conversation. That’s why we’re excited to bring different voices and experts to share their wisdom. Send us an email and let us know what you think. And remember the nav.it money app offers you free tools for checking in and managing your money moves.
You can download it at Google Play and the Apple Store.