I used to think a 401k was too complicated, then I saw my friend's account after 10 years

I just threw $50 a paycheck into a target date fund for 5 years, and it's already grown more than my old savings account ever did. How did you finally start saving for later?

4 comments

4 Comments

robins832mo ago

Wait, you only put in $50 a paycheck? That's barely anything.

kimmurphy2mo ago

Target date funds are actually a great way to start.

diana5122mo ago

Yeah, I saw a piece on those funds last week. The big thing they kept saying was how it handles the hard stuff for you, like picking where to put your money. It just gets more careful as you get closer to when you need it. Takes the stress out of trying to time the market yourself. Honestly, for someone just starting, that's a huge win.

ryan_shah381mo ago

Whoa yeah I was exactly the same way. I used to think 401k stuff was for rich people or finance guys who stare at graphs all day. Then I just set up a target date fund with $100 a check and forgot about it for like 3 years. When I finally logged in I was SHOCKED to see it had grown way more than my credit union savings that barely pays anything. It really is set it and forget it and that changed my whole mindset about saving for later. I still don't know half the terms they use but honestly who cares when the number keeps going up.