6. There’s another reason not to let being a young, low-income earner stop you from saving for retirement. If your adjusted gross income is less than a certain level, you can qualify for a tax credit. Check with your tax preparer for more information.
7. When you choose investment options, watch out for the fees. Compare the ratios of similar types of funds, and choose those with the lowest fees.
8. Be aware that early withdrawals come with big penalties. If you’re younger than 59 and you take an early withdrawal from your 401k or IRA, you risk a 10 percent tax penalty .
9. To avoid early withdrawal penalties in an emergency, set up a separate savings for emergencies and leave your retirement funds alone.
10. The younger you are, the more time you have to save for retirement, and the longer your hard-earned funds can grow. Learn about compound interest, and let it work for you!
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