Investing for a 20-Year-Old
At 20, many people are in their sophomore or junior year of college, or one to two years into a first job. If your employer offers a 401(k), start contributing immediately. Employer match is a guaranteed immediate return on every dollar contributed up to the match threshold, typically 50 to 100 percent of your contribution up to some salary percentage.
The priority order at 20 is: emergency fund, employer match, then Roth IRA. A Roth IRA contribution deadline is the tax filing deadline of the following year (typically April 15), so you have until April 15, 2027 to contribute for tax year 2026.