1 Financial Opportunity to Be Thankful For

The Financial Problem

We get it. The idea of saving for retirement couldn’t seem less exciting, than, well, saving saving for retirement. Not so fast. Lounging at the beach, pursuing a life of volunteering, skiing, you name it—it’s your retirement. But, to be able to enjoy these activities (yes, we consider lounging an activity) you have to start planning it for it. Now.

The Action

Considering that the average shopper will spend $375 this Black Friday, why not put that money—you know you would have found it somehow—into a Roth IRA, instead? A twenty-five-year-old doing this could earn about $13,000 by retirement! (That money will get you a lot sunscreen and beach towels.)

And, that’s only from saving on one Black Friday. (To do the math for yourself, check out our Roth IRA savings calculator.) Getting into the habit of setting aside just $50 per month into a Roth IRA for the next 40+ years could enable you to retire as a millionaire. (Again, we’re guessing that will provide for a lot of sunscreen and beach towels, not to mention beaches.)

So…instead of shopping on Black Friday, go against the grain and put that money into an IRA.

You don’t have one? Well, today would be a perfect day to make a statement about your financial future by opening an IRA. (Want a Checklist to walk you through the process? No problem! See LearnVest’s how-to guide, “I Want To Open An IRA.”) We recommend the Roth type of IRA because contributions to a Roth are only taxed when you put the money in, so that the earnings continue grow tax-free from that point onwards. There is also no age requirement to dictate when you need to take minimum distributions, which is what happens with a traditional IRA.

Our favorite part? Previously, you could only open a Roth IRA if you made under $116,000 per year. Starting in 2010, anyone can get one! We prefer the Roth IRA to a traditional IRA because it saves us money on taxes in the long run. To learn more about the differences between traditional IRAs and Roth IRAs, check out our Retirement Basics.

Because, trust us, you do NOT want to be old and penniless.