"Retirement may seem a lifetime away for many new college graduates. Still, the best time to start a retirement account is with that first job," says Joel Stone, a trust associate with Fifth Third Private Bank. "The longer money is invested, the more interest it is likely to earn."

You can do it!
Stone realizes many graduates must repay student loans and build an emergency fund, which also are top priorities. "However, I encourage people to review their receipts to see where they can curb spending. Often, they'll discover they can eat out less often or buy fewer lattes," he says.

People can save for retirement in different ways. Banks offer FDIC-insured savings accounts and individual retirement accounts (IRAs), and many employers offer 401(k) retirement accounts.

The benefits of retirement accounts
"Retirement accounts, such as FDIC-insured Traditional IRAs and 401(k)s, offer people several advantages," Stone explains. "Money in these accounts grows tax deferred, which allows it to compound more quickly than it would if it were taxed yearly. Also, with employee-sponsored retirement accounts, people may invest their income using pretax dollars, which allows them to reduce their taxable income."

Often, contributions can be automatically deducted from paychecks and deposited directly into 401(k) retirement accounts. "When money is automatically withdrawn, people don't seem to miss it as much," Stone adds.

He recommends people begin investing about 5 percent of every paycheck as soon as possible and eventually increase that amount to 10 percent or higher. "Learn to save more than you ever dreamed possible - and stick with it," he says.

As an added benefit, many employers match a portion of their employees' contributions. In some cases, employees may have to remain with a company for a certain time period before they are eligible to receive the match.

Seek information and advice
Stone encourages people to learn more about retirement planning. "I invite people to come into the bank and talk with us about retirement accounts and the various options available." He also encourages them to look online for information and read books, especially How to Retire Young and Rich, by Joseph S. Coyle.

For more information on saving for retirement, contact Fifth Third Bank at (866) 475-4201 or visit the Fifth Third Website.

Deposit products provided through Fifth Third Bank, Member FDIC.

* Refer to a tax professional to determine eligibility for contributions and distributions from IRAs, or refer to IRS Publication 590 for more information.

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