Congratulations college graduates - it's time to start adulting! With inflation at record rates, increased costs on just about everything, as well as the volatility of the market - saving for retirement may be even further down on recent graduates’ lists of priorities than ever before. However, this is precisely why it’s important to start saving now according to the specialists from PFG Advisors. 

1. DON’T DELAY    
   When you start a new job, there’s a lot of paperwork to fill out, but don’t overlook or delay in signing up for any employee-sponsored retirement plans offered to you. Your contribution will automatically be deducted from your paycheck before you even realize it’s not there forcing you to save vs. spend.

   
   

2. IT’S OK TO START SMALL
   You have time on your side so don’t feel that you need to be able to maximize your contributions from day one. Saving a smaller amount earlier puts you in a much better position versus waiting 10 years when you’ll have to save twice as much to make up for the years you lost. If your budget allows, increase your contribution in small increments of 1% or 2%, but be sure to not over stretch
   
   

3. PRE-PACKAGED SAVINGS: TARGET DATE FUNDS
   Not well-versed on the difference between small cap, large cap, high yield bonds and mutual funds? Join the club, but don’t let a lack of financial literacy be a barrier to start saving. Talk to a representative from the financial organization managing your company’s plan if you have questions on how to invest and be sure to look into Target Date Funds. Many plans offer Target Date Funds, which are “pre-packaged” funds specifically designed to adjust to a person’s age and when they plan to retire.  The target date is the approximate date when an investor plans to retire or start withdrawing their money.  The principal value is not guaranteed at any time, including at the target date.
   
   

4. FREE MONEY! EMPLOYEE MATCH
   It’s pretty common for employers to offer a company match on a certain percentage of the money you contribute to your retirement plan. It varies, but often they’ll provide 50 cents or even a dollar for dollar match on every dollar (up to a certain percentage) that you save in your plan. Be sure to ask about any matching opportunities and take advantage of this free money.  
   
   

5. DON'T SWEAT THE UPS AND DOWNS
   Think long-term. Market volatility and talks of a recession can be unsettling to even the most seasoned investor. The good news is that twenty-somethings have plenty of time to make up for losses you may see in the near term. History shows “staying the course” and maintaining your long-term objective results in better results than attempting to time the market.

   
   

Have questions? Financial planning advisors from PFG Advisors are available for commentary
on any of the above action items.