Why Start an IRA Sooner Rather Than Later?

Opening an Individual Retirement Account (IRA) early in your career can be a smart way to start building towards long-term financial security. Whether you’ve just graduated or are a few years into your first job, getting an early start gives you a valuable head start. At TradeUP, we aim to make investing feel approachable—so you can focus on the future with confidence.

Take Advantage of Compound Growth

When you start saving early, your contributions have more time to grow. Thanks to compounding, even modest contributions can grow significantly over the years. This means your early efforts could make a big difference later on.

Example:

Let’s say you contribute $7,000 annually for 30 years and earn an average 7% return each year. By the time you retire, your total balance could exceed $400,000—even if your annual contribution doesn’t change.

Chart showing the power of compound growth over time.

Choosing the Right IRA for You

Both Traditional and Roth IRAs offer long-term benefits. While their specific features differ, starting early gives your investments more time to grow within one of these account types. Be sure to consult a tax or financial advisor to determine which IRA fits your individual situation.

Grow Into Your Contributions

Starting now doesn’t mean contributing a large amount right away. It’s about creating space to build over time. As your income grows, you may choose to increase your contributions gradually. This flexibility can help your IRA evolve with your financial life.

Build a Lifelong Savings Habit

Setting up an IRA early instills discipline. It helps you develop consistent saving habits that can influence your broader financial behavior such as budgeting, investing, and mindful spending.

Retirement can span 20 years or more, and unexpected costs—like rising healthcare expenses—can place real pressure on your savings. Starting early helps build a stronger financial cushion, giving you more confidence and peace of mind as you plan for the road ahead.

To help you take that first step, TradeUP is offering a limited-time 3% match on new IRA contributions, a boost toward your long-term financial goals.

Open an IRA Account Today

The information provided is for demonstration and educational purposes only and does not constitute tax, investment, or professional advice. Consult a qualified tax or financial advisor for personalized guidance. Nothing herein shall be construed as an offer, solicitation, or recommendation to buy or sell any securities or derivatives, nor does it create a fiduciary relationship. TradeUP makes no representation or warranty, express or implied, regarding the accuracy, reliability, or completeness of the information, including third-party content, which has not been independently verified. Investment decisions should not rely solely on this material, as information is subject to change without notice. All investments involve risk, including loss of principal. Past performance does not guarantee future results. Carefully assess your risk tolerance and objectives before investing. Terms and conditions apply; see TradeUP.com for details. © 2025 TradeUP Securities, Inc. All rights reserved.