getting raises regularly, earmark them for your retirement. You’ll hardly notice that you’re saving more.
Investing your money has gotten a lot easier in recent years with the increased use of target date funds. These funds are comprised of several other funds that make up a well-balance portfolio. The manager—not you—decides what the exact mix of socks, bonds, commodities or cash needs to be, and then adjusts it over time. Simply choose a target date that matches your anticipated retirement date.
“Target date funds are ideal for younger folks because their financial situation is generally not complicated and they don’t need a lot of customization that someone in their 40s or 50s might,” says Pam Hess, director of retirement research with Hewitt.