The best tool for young people who have started saving for retirement is not the latest app or cryptocurrency scheme. It’s time.
“The longer that money sits, the more it’s going to grow,” Chris Browning, the host of the
“Popcorn Finance” podcast, told Boston Public Radio on Wednesday. Investing money, even small amounts, in the stock market or a mutual fund with a company’s retirement plan can lead to large gains by the time it’s time to retire.
“It’s the simple way to invest without thinking about it,” Browning said, referring to employer retirement plans like a 403(b) or 401k.
That’s the sort of usable financial advice Browning dishes out on the podcast he started in 2017. He says he’s now had more than 1.7 million downloads. He came up with the name after a brainstorming session in the kitchen.
“I was looking at the microwave. You know, popcorn has … a natural built-in short timer. I like popcorn,” Browning said. That timing matched his short podcast episodes, which top out around 15 minutes.
People can be intimidated by investing, but the best way is to just get started and get over that initial fear, he said. “Popcorn Finance” episodes walk listeners through their best options.
Before someone can save enough for retirement, they have to pay off their debts. Debt is a common problem, Browning said, and he thinks it’s helpful for people to hear how others have handled it.
Browning said first to focus on paying off really high-interest rates debt, like for certain credit cards. But, still — he emphasized — don’t forget about saving for retirement. Even putting a small amount like $20 or $50 a month in a retirement or investment account can beneficial down the line.
“Something is better than nothing,” he said.
Browning recommends sticking with proven retirement strategies, like an IRA or 401k. If someone wants to try their luck with cryptocurrency, he said to only put at most 5% of savings there because it’s more speculative and prices frequently fluctuate.
“That way you can still kind of get the rush or the thrill of trying something new … and seeing the big gains that are possible, but avoiding the … disastrous losses that would occur if you put all your money into something that failed on you,” Browning said.