The best tool for young people starting to save for retirement isn’t the latest app or cryptocurrency scheme. It’s time.
“The more money you leave alone, the more it will grow,” Chris Browning, host of the “Popcorn Finance” podcast, told Boston Public Radio on Wednesday. Even if it’s a small amount, investing your money in the stock market or mutual funds through your company’s retirement plan can yield big returns by the time you retire.
“It’s a simple way to invest without thinking,” Browning said, referring to employer retirement plans like 403(b)s and 401k’s.
This is the kind of financial advice you can put into practice on the podcast Browning started in 2017. He says it currently has more than 1.7 million downloads. He came up with the name after a brainstorming session in his kitchen.
“I was looking at the microwave. You know, popcorn has a built-in short timer. I like popcorn,” Browning said. The timing coincided with his short podcast episodes, which are about 15 minutes at most.
People can be scared of investing, but the best thing to do is just get started and overcome the initial fear, he said. In this episode of “Popcorn Finance,” we walk listeners through the best options.
Before you can save enough for retirement, you have to pay off your debt. Debt is a common problem and people can benefit from hearing how others have dealt with it, Browning said.
Mr. Browning said he would first focus on paying down debt with very high interest rates, such as certain credit cards. But still, he stressed, people should not forget about saving for retirement. Even putting a small amount, such as $20 or $50 a month, into a retirement or investment account can be beneficial down the road.
“Something is better than nothing,” he said.
Browning recommends sticking with proven retirement strategies like IRAs and 401k’s. If someone wants to try their luck with cryptocurrencies, they should only put up to 5% of their savings there, as they are speculative and prices fluctuate frequently, he said.
“That way you still get the rush and thrill of trying something new…and seeing the potentially big profits when you put all your money into something. You can avoid the disastrous losses that would occur if you failed,” Browning said.
