Why Now is the Time to Start Saving for Retirement


Disclaimer: “I have been warned repeatedly by my trio of 20-something daughters, that the term ‘Millennial’ is going out of style. To maintain peace at home I will avoid that term in this post.”

There are a number of reasons young people (aged 18-34) are not investing in the stock market: lack of financial literacy, lack of money because of student debt and fear of risk. Luckily, there are solutions. No young trader should miss out on saving for future goals because of fear of market risk or from lack of knowledge.

Time is a key element to investing. With even a small amount of money earmarked now for retirement, savers can reap a big rewards down the road.

Young people entering the job market and earning entry-level incomes often have conflicting demands on their wallets. They may need to finance weddings, buy homes or pay off student loans. Still, there are major benefits of investing for the long term.

The good news is that special kinds of instruments have tax benefits that can really let your capital appreciate over the decades. Individual retirement accounts (IRAs), Roth IRAs, and SEP IRA are three of my favorites.

One problem is that many young people learn about the market passively, especially from social media. That, in turn, can lead to conflicting information. Getting the right knowledge can take a fair bit of work. Fortunately, TradeStation University contains a wealth of education, trading strategies and technological solutions for younger investors to begin building a balanced, well-diversified portfolio.

All the potential obstacles facing this group can be overcome. No young trader should miss out on saving for future goals because of fear of market risk or from lack of knowledge.

Did you know TradeStation has a special offer and discounted pricing for customers opening IRA accounts? Click here now to get started.

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Dr. Don Pratl is Director of Trader Development and Education for TradeStation. He joined TradeStation in 2016 after holding similar roles with other online brokerages. Don’s long career in the financial services industry reflects expertise in administering trading and investment strategy programs for retail investors as well as financial services professionals. Since the 1980s, he has held various positions in areas including CBOE trading floor order execution, marketing, sales, personnel management, training and customer service. Don holds series 3, 4, 7 and 63 FINRA licenses, earned his Ph.D. in Organization and Management, and his M.A. and B.A. in Political Science. He has been an occasional adjunct college instructor since 2004 at a range of institutions, teaching undergraduate, graduate and doctoral students using in-class and online formats.