Retirement Planning for Millennials
Thursday, January 26, 2017
If your career is just getting started, it may seem silly to start planning for its ending. But early retirement planning is smart retirement planning. Millennials (born between 1980 and 2000) are faced with higher debt and less chance of a pension or social security, so planning for the future can’t wait.
Most Millennials procrastinate because they simply don’t know where to begin. Even the smallest steps are beneficial, so start here:
· Manage your expenses well. Recent studies indicate that 42% of Millennials rely on payday loans to make ends meet. If you’re behind, it’s hard to plan for the future.
· Have an emergency fund. Don’t be short on cash in case of the unexpected.
· If your company has a 401k, participate. Even better, compare it to an equity indexed universal life plan, and participate it whichever will provide more income after taxes.
· Negotiate your salary. Having a higher income gives you more money to save. 75% of employers could raise the starting salary by 5-10%.
Millennials are unlike their predecessors. They’re much more like to start their own business than to invest in stocks. They are entrepreneurial and tech-savvy. The world needs to be prepared to be blown away by Millennials and Millennials need to prepare to blow away the world.