What the millennial generation needs to do now to secure their financial future
Nearly one in three millennials have no money saved for retirement, and a quarter of millennials – people between the ages of 18 and 34 – report owing more money than they have currently saved, according to a survey released by the Indexed Annuity Leadership Council (IALC). So, how can millennials with nothing saved for retirement get started? Here are some basic tips to get started.
Every penny counts
When you’re young, you have time on your side, so put as much money aside as you can. This might mean skipping a night or two on the town or packing your lunch more often. While this doesn’t seem like much, making one or two small changes can add up to considerable savings.
Take free money
Consider contributing to your company’s 401(k) plan or any employer-sponsored available plan. Think of any plan your employer is willing to match as “free money.”
Balance your portfolio
As a young professional, you have the luxury to put some of your money into high-risk investments, since your retirement is seemingly far away. However, for the safety of your future, it’s important to also add more conservative savings products like health savings accounts or fixed indexed annuities to balance your retirement portfolio.
Don’t wait. It’s crucial to start saving for retirement as early as you can. The earlier you start saving, the more likely you are to meet your retirement goals. Even if you can only contribute 1 percent of your salary, anything is better than nothing, and it can add up quickly.