Retirement for Millenials: How to Start Saving Before It’s Too Late
When Millenials envision their retirement, it may be lounging on a yacht and eating avocado toast while listening to podcasts. Before exploring the cliches, let’s outline the ways this can be possible.
At Goldstone Financial Group, we believe that your financial future is far too important to leave to chance. However, many Millenials do not know how to save for retirement. The educational resources for retirement planning are often lackluster. How can they get up to speed?
That’s where Goldstone Financial Group can step in to help. Principal Anthony Pellegrino has spent his career helping people of all types have secure financial futures. The state of retirement education is improving overall, but not quite up to par with what’s needed.
That bodes the common question: is it ever too early to start saving for retirement? Goldstone Financial Group says no. The key is to have a strategy that helps you meet your future goals while still living well in the present tense. Here are the top five ways to start saving now.
- Have a vision
Saving is just the start. When you stop earning income and start living off your investments, picture your life. Would you settle for a condo in the suburbs or prefer for the house on the beach? Though your answers may change over time, determining them now will help you save accordingly.
2. Don’t inflate your lifestyle
No matter how much or little you make now, you can start saving. As your income increases, your savings should as well, not necessarily your lifestyle. Be careful about buying a more expensive car just because your income has increased. That money should be used to secure your future if you want to have the yacht instead of your parents’ basement.
3. Know the tax code
Don’t understand what to invest and where? Understand how taxes work on retirement investments. Most corporations offer 401(k) accounts, which allow you to invest money pre-tax. That means you won’t have to pay taxes on that money until you withdraw it in retirement. Many employers will match your contributions up to a certain percentage, which is worthwhile in the long run. Taking advantage of this means you’re not throwing free money away.
4. Open a 401(k) or IRA
Social security is changing. While it will likely still exist by the time you retire, its reliability is to be determined. Your best defense against the unpredictable nature of social security is to start a 401(k) or IRA. If your company offers one of the two, get the maximum match from it. Some trustworthy investment options include exchange-traded funds, mutual funds, and index funds. You might also consider a health savings account that offers tax-free retirement benefits.
5. Get advice
Personal and professional opinions are valuable for your decision-making process. You should feel comfortable asking questions and answers should be clear. Ask your parents how they survived the 2008 financial crisis. Ask your bank what they think you should do with your funds. Establishing a relationship with your bank can also benefit you in the long run for things like getting credit. Stock brokerages, mutual fund companies, and financial advisors can also set you in the right direction. Speaking of which, that’s why we’re here.
However you save, it’s never too early to start. Make a plan to be prepared for and enjoy retirement when it comes. No matter how little you know about your future, it’s not too early to prepare for it. Call Goldstone Financial Group, utilize Anthony Pellegrino’s knowledge to your benefit.
Learn more about Goldstone Financial Group!
Investment Advisory Services offered through Goldstone Financial Group, LLC (GFG), an SEC Registered Investment Advisor, 18W140 Butterfield Rd., 14th Floor, Oakbrook Terrace, IL 60181. Tel. 630–620–9300.