Now is the perfect time for millennials to save for retirement

Millennials are often regarded as financial freewheelers. People are always quick to assume that the twenty and thirty-somethings of this era do not take their financial health and retirement seriously. However, more and more millennials are becoming concerned and are taking charge of their future.

Image source: moneynewsdaily.com

Now is the perfect time for millennials to save for their future. Options may be unavailable for them when they start saving late. A study led by The New York Times zoomed in on the financial lives of five millennials who were saving for their future. The research landed on these conclusions: 

-These millennial savers are taking advantage of Roth retirement funds. These include individual retirement and 401(k)’s that are different from traditional retirement schemes made after tax. 

-Millennial workers to contribute as much as what their employers are willing to match in a 401(k). 

Aside from taking care of their retirement funds, there are also millennials who have diversified investment portfolios including individualized stocks, index funds, mutual funds, and bonds so they can get money from different channels. While stock prices are not all consistent, having different sources of income can assure one’s financial health in the future. 

If millennials start saving later, they might have to face late retirement, or they won’t have enough to get by as they age. By saving now, they are granting their future selves financial freedom. 

Image source: usnews.com

Barry Bulakites is the president, chief distribution officer, and co-founder of Table Bay Financial Network, Inc. He is also a financial resource speaker. Visit this blog to learn more about finance.

Comments

Post a Comment

Popular posts from this blog

Top mistakes when investing in a retirement plan

Image
Image source: moneysense.ca A lot of people make mistakes when investing in their retirement plan. Such an endeavor takes decades to fulfill, and small missteps can have major repercussions on your life savings. Keep in mind that every job, every deposit, every effort you put into your retirement plan leads to you having a comfortable life after your professional life. With that in mind, here are the top mistakes people make when investing in their retirement plan. Investing on a plan with outdated assumptions If you are working with a relatively old insurance company, be sure to make sure that you update your retirement plan using a variety of market returns assumptions. Your savings, no matter how big they are, are still subject to real-world market conditions like recessions. Even small changes in the economy can easily derail your retirement plan. Always check the computations if there is a significant change in the market. Image source: moneysense.ca Reti
Read more

A Primer On Asset Protection Planning

Image
Image source: wintterlaw.com There would always be market uncertainties; no one can change that fact. Combine that with a litigious society and occasional amendments in tax laws, asset protection planning has become more important than ever. Asset protection is defined as a set of techniques or strategies that seek to guard one’s properties from being taken by someone else through a lawsuit or civil money judgments. Generally, this is done by limiting creditors’ access to assets subject to claims, which are called nonexempt assets. They are insulated by repositioning them into exempt assets, which are out of the reach of creditors’ claims. When done properly, asset protection is done in a legal manner, avoiding perjury, fraud, concealment, or tax evasion. The most effective asset protection planning takes a proactive approach; it is not implemented when a judgment creditor is already about to begin a claim on the properties. Image source: corporatedirect.co
Read more

Tax planning: Steps and strategies

Image
Tax planning is widely known to be the manner of forecasting one’s tax liability and creating ways and methods to reduce it. This involves analyzing one’s financial situation from a tax perspective, with the goal of tax efficiency. Here are some steps for businesses to perform this crucial exercise in financial planning.  Image source: Pinterest.com        Start early : The tendency for most people is to do taxes in March or April when the deadline for settling tax returns is already looming near. Start earlier to have more time to estimate one’s investment gains and losses, as well as income.  C alculate tax liability : Know these liabilities and work toward them. This need not be a difficult thing to do if one has a relatively fixed income and salaried employees. Engage the services of a tax expert if you find yourself in the dark when it comes to computations.  Profile risk level : Here, find a good level of investment risk that one’s current financial sta
Read more