This article was co-authored by Dmitriy Fomichenko and by How.com.vn staff writer, Eric McClure. Dmitriy Fomichenko is the president of Sense Financial Services LLC, a boutique financial firm specializing in self-directed retirement accounts with checkbook control based in Orange County, California. With over 19 years of financial planning and advising experience, Dmitry assists and educates thousands of individuals on how to use self-directed IRA and Solo 401k to invest in alternative assets. He is the author of the book "IRA Makeover" and is a licensed California real estate broker.
There are 22 references cited in this article, which can be found at the bottom of the page.
This article has been viewed 16,990 times.
The fact that you even opened this article is a huge sign that you’re already ahead of the game. A lot of people your age out there aren’t thinking ahead, and while they’re running around spending money and living in the moment, you’re building for the future! Your 20s are the perfect time to get started since you have more room to develop good habits, take calculated risks, and get that juicy compounding interest rolling. If you’re diligent about budgeting, saving, and investing your money, there’s no reason you can’t retire as a millionaire!
Steps
Expert Q&A
Video
Tips
- People talk about diversifying your investments and while it's important, the goal there with different asset classes is to stabilize a portfolio so it stays green during choppy periods in the market. You’re in your 20s, so you have more than enough time to hold through a rough downturn. Diversifying your stocks and ETFs is good, but don’t worry about bonds or fixed income until you’re in your 30s.[30]Thanks
- If you do want to allocate some of your portfolio to less volatile investments, make them less than 5-10% of your portfolio. You need some volatility and time to take advantage of the growth in the market.[31]Thanks
- Don’t bother with the “planning” part of retirement just yet. Everyone loves to talk about a “retirement plan,” but you’re in your 20s. Whatever plan you come up with is probably going to change at some point. It’s good to have goals, but you don’t have to follow an explicit outline.Thanks
Expert Interview
Thanks for reading our article! If you’d like to learn more about retirement, check out our in-depth interview with Dmitriy Fomichenko.
References
- ↑ Dmitriy Fomichenko. Financial Planner. Expert Interview. 28 June 2021.
- ↑ Dmitriy Fomichenko. Financial Planner. Expert Interview. 28 June 2021.
- ↑ https://www.cnbc.com/2020/07/20/good-debt-vs-bad-debt-why-what-youve-been-told-is-probably-wrong.html
- ↑ https://www.nerdwallet.com/article/credit-cards/credit-card-debt-bad-debt
- ↑ https://www.nerdwallet.com/article/credit-cards/credit-card-debt-bad-debt
- ↑ Dmitriy Fomichenko. Financial Planner. Expert Interview. 30 June 2020.
- ↑ https://www.forbes.com/advisor/banking/ways-to-make-saving-money-a-habit/
- ↑ https://www.mymoneycoach.ca/budgeting/what-is-a-budget-planning-forecasting
- ↑ https://www.detroitnews.com/story/life/advice/2020/01/24/millennial-money-shop-way/41059675/
- ↑ https://www.cnbc.com/2019/02/11/how-compound-interest-works-and-how-it-can-help-you-save-money.html
- ↑ https://www.nytimes.com/2020/11/27/business/millennials-retirement-saving.html
- ↑ https://www.macrotrends.net/countries/USA/united-states/inflation-rate-cpi
- ↑ https://www.nerdwallet.com/article/investing/average-stock-market-return
- ↑ Dmitriy Fomichenko. Financial Planner. Expert Interview. 30 June 2020.
- ↑ Dmitriy Fomichenko. Financial Planner. Expert Interview. 28 June 2021.
- ↑ Dmitriy Fomichenko. Financial Planner. Expert Interview. 28 June 2021.
- ↑ https://www.cnbc.com/2018/07/30/roth-vs-traditional-iras-how-to-decide-where-to-put-your-money.html
- ↑ https://www.cnbc.com/2018/07/30/roth-vs-traditional-iras-how-to-decide-where-to-put-your-money.html
- ↑ https://www.forbes.com/advisor/retirement/best-places-to-open-an-ira/
- ↑ https://www.irs.gov/retirement-plans/traditional-and-roth-iras
- ↑ https://www.calculator.net/ira-calculator.html?cstartingprinciple=6000&cannualaddition=6000&cinterestrate=10&ccurrentage=20&cretirementage=65&ctaxtrate=25&ctaxtrateafter=15&cinflationrate=2&printit=0&x=68&y=26#ira-result
- ↑ https://www.cnbc.com/2020/11/20/attention-robinhood-power-users-most-day-traders-lose-money.html
- ↑ https://www.fool.com/investing/stock-market/types-of-stocks/growth-stocks/value-vs-growth-stocks/
- ↑ https://www.businessinsider.com/personal-finance/do-i-need-to-invest-in-bonds-20s-2020-12
- ↑ Dmitriy Fomichenko. Financial Planner. Expert Interview. 28 June 2021.
- ↑ https://www.forbes.com/advisor/investing/dollar-cost-averaging/
- ↑ Dmitriy Fomichenko. Financial Planner. Expert Interview. 28 June 2021.
- ↑ https://minafi.com/speculative-investing
- ↑ https://www.investopedia.com/terms/f/financial-independence-retire-early-fire.asp
- ↑ https://content.time.com/time/business/article/0,8599,1982327,00.html
- ↑ https://www.businessinsider.com/personal-finance/do-i-need-to-invest-in-bonds-20s-2020-12
About This Article
Did this article help you?
⚠️ Disclaimer:
Content from Wiki How English language website. Text is available under the Creative Commons Attribution-Share Alike License; additional terms may apply.
Wiki How does not encourage the violation of any laws, and cannot be responsible for any violations of such laws, should you link to this domain, or use, reproduce, or republish the information contained herein.
- - A few of these subjects are frequently censored by educational, governmental, corporate, parental and other filtering schemes.
- - Some articles may contain names, images, artworks or descriptions of events that some cultures restrict access to
- - Please note: Wiki How does not give you opinion about the law, or advice about medical. If you need specific advice (for example, medical, legal, financial or risk management), please seek a professional who is licensed or knowledgeable in that area.
- - Readers should not judge the importance of topics based on their coverage on Wiki How, nor think a topic is important just because it is the subject of a Wiki article.