Duckett, who began her career at Fannie Mae before leading JPMorgan Chase’s Consumer Banking division and later becoming CEO of TIAA, said her retirement strategy has remained consistent throughout her career.
Her advice to young professionals is simple: don’t wait.
“Especially for young people, retirement seems so far away, but there’s a hack,” Duckett said. “The hack is: first job, first dollar.”
She encouraged workers to contribute to their employer-sponsored retirement plan before they become accustomed to spending their full paycheck.
“The first thing I tell young people is, your very first job, max out before you get the check, because once you get it, you will find ways to spend it,” Duckett said. “Power of compounding: $1 today is worth more than $1 tomorrow…You want to make sure you take full advantage of that match.”
“For young people, max out understanding that you have to save to invest…Max out on your retirement, have your rainy day fund to make sure that you can afford the flat tire and all the basic things that life will give you,” she said. “Then you can start investing.”
Although her father began contributing later in life, Duckett said the experience reinforced the importance of starting early.
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Source: Black Enterprise
