This is the first post in our Retirement Investing 101 series written by Amanda Smith, Client Services Specialist at CESI. Continue on to Part 2.

Recently I received a call from a younger client when, somehow in the midst of the conversation, I mentioned a 401(k), only to receive the “blank stare” as I like to call it. Of course, I cannot see the “blank stare” over the phone, but the silence was deafening because she had no idea what a 401(k) was. I used this as an opportunity to educate her briefly about the benefits of a 401(k), hoping she was going to immediately do more research with her HR Manager the following day. I’m still hoping this is true, but this certainly raised the issue of how many people do not even know what a 401(k) is who have the option available. Fortunately, I was asked to start this blog as a topic series educating all generations about the wonders of saving and investing for retirement.

First, most people don’t really think about retirement and what that looks like for them, especially when they’re in their twenties. I mean, twenty-year-olds are never going to get old, right? No. Getting older is inevitable and will eventually happen to all of us. There will come a day when you are ready to stop working and put all of those retirement plans into fruition. Perhaps your plan is to vacation to Hawaii or cruise around the world or simply spend the rest of your life spoiling your grandchildren. Making those plans happen require some major funds and you won’t have those funds unless you save up! Regardless of the time you have until retirement, it is NEVER too early to start saving. Younger generations cannot expect the government to fund any of these retirement dreams. In my opinion, wouldn’t it be best to take responsibility for your own financial future by saving enough for your living expenses, rather than rely on any governmental entity?

One thing you’ll need to remember that’s very important: you have the ability to work now because you are younger. You are able to maximize your income using all of your brains and physical abilities. You have no idea what will happen to your body as you become older but your ability to maximize your income will decrease. Therefore, take advantage of your youth (I know you have never heard that before!) and save now to enjoy later when you don’t have to work or cannot work.

Taking that responsible step toward financial independence relies on your knowledge and ability to follow through. I can help you with the education but you will have to follow through. This blog is the first in a series providing you with the information about saving and investing to include 401(k) and IRAs.

Continue on to Part 2.

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