Post-graduation life can be so exciting for young professionals: there’s new experiences, new careers, and exciting opportunities to consider. With so many adjustments and transitions, this can also be an overwhelming time for young adults. Our team has helped many families and their adult children navigate this time and make important decisions in their first jobs that will set them up for success in the future.
Here is our first financial tip for recent graduates when beginning their first job:
Tip 1: Enroll in your company’s benefits (HSA, FSA, 401k, Roth)
The most important thing a young professional can do is take advantage of time by contributing to investment and savings accounts.
- Tax-free growth: Begin contributing to Roth and Health Savings accounts to begin taking advantage of tax-free growth from the very beginning.
- Understand compounding interest rates: The advantages and power of compounding interest rates are hard to match in other savings scenarios. Early investing can make the difference of millions of dollars by the time a young person is ready to retire. Want to learn more? Check out our Power of Compounding case study.
To speak with a financial advisor, head over to our Contact Us page! We have financial advisors for all ages and life stages, and we’re happy to work with you to build a successful financial future.