Many companies offer tax-advantaged retirement plans where they incentivize retirement savings by matching the portion of your salary that you contribute to the plan, up to a certain percentage. This is like getting a raise from your employer but that you defer. This money can be accessed after you are vested, typically 1 – 5 years. The IRS also provides several penalty free withdrawals before age 59 ½ if you qualify. Here is a link to the list:
If you then invest the money in your retirement account over the long term in an Exchange Traded Fund (ETF) like “SPY” you will have a great start on a retirement portfolio. Of course, before investing, check in with your financial advisor to determine what investments are suitable for your situation.
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