TIAA CEO Thasunda Brown Duckett built generational wealth by maxing out her 401(k) on a modest salary of $26,000.

According to TIAA's President and CEO, Thasunda Brown Duckett, one of the best financial decisions she ever made was when she was just starting out and earning a modest salary of $26,000 a year. In a recent interview on Fortune's Titans and Disruptors of Industry podcast, Duckett shared that after graduating from the University of Houston in 1996 and landing an entry-level job, she immediately made saving for retirement a top priority. This, she believes, has played a crucial role in shaping her financial future.

"I remember making $26,000 when I first graduated from college, which was $26,000 more than I had ever made before," Duckett shared. "Despite the low salary, I didn't hesitate to max out on my 401 plan." As someone who has climbed the corporate ladder, from her early days at Fannie Mae to leading JPMorgan Chase's Consumer Banking division, and now as CEO of TIAA, Duckett's retirement strategy has remained consistent throughout her career. Her advice to young professionals is simple but powerful: don't wait.

"Retirement may seem like a distant concept for young people, but there's a hack," Duckett explained. "The hack is to start early, as soon as you land your first job and get your first paycheck." She emphasized the power of compounding and the importance of taking full advantage of any employer-matching contributions to a retirement plan. Duckett also encourages young professionals to build wealth beyond their 401 by maintaining an emergency fund and investing in other vehicles such as Roth IRAs, stocks, and high-yield savings accounts.

"It's important to understand that in order to invest, you need to save first," she said. "Max out your retirement contributions and have a rainy day fund for unexpected expenses like a flat tire or other basic necessities of life. Once you have those in place, then you can start investing." Her commitment to retirement planning is rooted in her own family's experience.

Duckett remembered learning that her father, who had worked for many years in a warehouse and as a truck driver, had never contributed to his employer's 401, leaving him with limited retirement savings. "Growing up, we experienced financial insecurity," Duckett shared. "When I realized that my father had never contributed a single dollar to his 401, it was a wake-up call.

That's 30-plus years of missed opportunities for compounding." Although her father eventually started contributing later in life, Duckett believes that his story serves as a reminder of the importance of starting early. "I want to remind the next generation that we are living in an incredible time," she said. "We have the power to shape our future and make the most of our financial opportunities." With her own success story as inspiration, Duckett hopes to empower others to take control of their financial future and make smart decisions, no matter what their income may be.