The summit · Reservoir 04

Retirement is the top
of your mountain.

It's the longest climb — and the one where time does the most work for you. Here's how to start, in plain language, without the jargon or the pressure.

Why it's the summit

Time is the lever, not perfection.

Retirement sits at the top of the mountain because it's the goal you climb toward — and because the earlier you start, the more the mountain does the lifting for you. You don't need to get it perfect. You need to get it started, and let time compound.

Start here

The order that usually works.

01

Capture your full match

If your job matches retirement contributions, that's the highest-return move on the whole mountain — an instant, guaranteed return you can't get anywhere else. Contribute at least enough to get every dollar of the match first.

02

Open a simple IRA

A Roth or Traditional IRA at a major, low-cost brokerage — Fidelity, Schwab, or Vanguard. A plain, broad index fund inside it is plenty to begin. You don't need anything exotic.

03

Raise it with every raise

Nudge your contribution up a percent or two each time your pay goes up. You won't miss what never lands in your checking account — and the climb gets steeper in your favor.

The short version

Roth vs. Traditional.

Roth IRA

You pay tax on the money now, it grows tax-free, and you withdraw it tax-free in retirement. Often a good fit if you're early in your career or expect your tax rate to be the same or higher later.

Traditional IRA

You may deduct the money now and pay tax when you withdraw it later. Often a good fit if you want the deduction today or expect a lower tax rate in retirement.

Not sure? Many people early in the climb lean Roth — but starting at all matters far more than picking perfectly. You can adjust as your situation changes.
A rough target

How much should go toward retirement?

A commonly cited target is 10–15% of your income toward retirement, including any employer match. But the honest answer is simpler: more than you're doing now, started sooner than you think. Begin where you can, and raise it over time.

For experienced investors only

A note on self-directed IRAs.

Once your foundation is solid and you understand the basics above, some experienced investors explore self-directed IRAs — retirement accounts that can hold alternative assets like real estate, private businesses, or precious metals, instead of ordinary funds.

Straight talk before you go there. These are advanced accounts. The custodian does not vet the investments for you, and the U.S. Securities and Exchange Commission has specifically warned that self-directed IRAs carry higher fraud and due-diligence risk. This is not a starting point — it's for people who have already covered the basics above and fully understand what they're buying. If that's not you yet, stick with steps 1–3.

If that describes you, these are two custodians in the self-directed space:

Disclosure: the links above are affiliate links. NorthReserve may earn a commission if you open an account, at no additional cost to you. This is a pointer for people who already know they want a self-directed account — it is not a recommendation to invest, and NorthReserve does not vet these providers or their investments. Do your own due diligence.

NorthReserve is educational and general in nature — not personalized investment, tax, or legal advice, and not a fiduciary. Retirement decisions depend on your specific situation. For guidance tailored to you, consider speaking with a qualified fiduciary financial advisor or tax professional.
See your whole climb

Where does your retirement reservoir stand?

Take the 3-minute assessment to see your whole mountain — and the one step that strengthens it most right now.