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Despite building two companies that sold for at least $1 billion, Waze cofounder Uri Levine isn’t a big spender, he says.
While he invests his time and money in startups, he lives in a rental apartment and says he doesn’t own a yacht.
“I don’t need more money,” Levine told Business Insider in an interview, adding that he has “a very simple life,” and finds his work fulfilling.
Levine is a big advocate for investing, though. In 2012, he cofounded Pontera, a company that develops financial advisor software to help manage 401(k)s.
“Retirement saving is a big problem,” Levine said in an interview with Business Insider, adding that millions of Americans don’t invest correctly.
His No. 1 piece of retirement advice is simple: Start thinking about saving at 18.
“The nature of the beast is very simple,” Levine said. “When you’re young you don’t care, and when you become older and you start to care, it might be too late.”
He said retirement will be significantly easier if individuals start putting aside money earlier.
“The compound effect of their return is the one that is going to make the difference,” Levine said. Compounding interest is a financial concept that refers to when interest earns interest and accelerates the growth of investments and savings over time.
Many older Americans seem to agree with this advice. In a recent survey of 4,500 retirees and interviews with more than 200 older Americans, BI’s Noah Sheidlower found that most emphasized starting early to take advantage of compound interest. That said, the recommended amount of money you set aside for retirement can vary. For example, Fidelity advises saving 10 times your salary by 67, while T. Rowe Price recommends saving between 7.5 and 13.5 times your income by age 65.
Financial practices like the 50/30/20 rule suggest allocating 50% of your income toward necessities, 30% toward discretionary spending, and 20% toward savings and debt repayment.
“The most important part? Don’t overlook it,” Levine said. “Start as early as you can and if you need, go and speak with financial advisor.”
The post Waze cofounder shares his No. 1 piece of retirement advice appeared first on Business Insider.
