At age 22, I had just graduated from college and was about to embark on my grown-up life. I had a grand plan for how my future would unfold, and I thought I had everything figured out. It’s one of those age old mistakes that young people make—we head out into the world armed with the knowledge that we have, completely oblivious to all that we don’t know and all that we will learn, earn and experience along the way. If there is one lesson that rings true and always bears repeating it is that wealth is attainable, especially to those who start saving early and have the benefit of time on their side.
To all you twenty-somethings out there about to start your grown-up lives, follow these 5 simple steps to work towards a wealthier future:
Distributions from qualified retirement plans and traditional IRAs are taxed as ordinary income and, if taken prior to reaching age 59½ may be subject to an additional 10% federal income tax penalty