Millennials (those born between 1981 and 1996) are one of the most studied generations. Among the findings about this group is that the vast majority of them often discuss saving, investing, and retirement planning with family and friends, according to the 2014 Transamerica Retirement Survey of Workers.
This is a good sign. T he bad news: Studies show that 24% of workers had less than $1,000 saved for retirement, and 55% had less than $50,000. So what can millennials do to ensure their nest eggs improve sufficiently by the time they get around to retirement? Here are a few tips.
- Start planning for retirement now
Personal financial planners and advisors will tell you that although it might seem far away, the best time to start saving for your retirement is now. If you begin in your 20s, you will save more over time and the compounded interest will have a bigger effect. But if you’re a millennial in your 30s, you can still save a substantial amount if you make good investment choices, if you have or get a job that offers retirement benefits, and if you start saving now.
- Maximize savings and investments
In addition to saving for retirement (401k, IRA plans, etc.), you should also look at investing in stocks, bonds, real estate, and other asset classes to boost your long-term returns. There is always risk associated with investments, but the greater risk is doing nothing at all to prepare for the future and having no saving to draw from as you get older. There are many personal wealth management experts, including Sound Asset Management. They can help you create your path to the future and make the choices that will be most helpful in ensuring that you maintain your preferred lifestyle.
- Keep family and emergencies in mind
Retirement planning and investments should also include estate planning. What’s more, emergencies can arise at any time and you will want to set aside funds (the experts recommend about six months’ worth) that can be freed up for such events, should they occur.