If you are a millennial, you’re in a perfect position to start planning for your retirement. The sooner you start, the more opportunity you have to build wealth and position yourself for a comfortable (and possibly early) retirement. You’ll also be among the 72% of your generation who have already begun saving.
The key to creating a secure retirement is maximizing your return on investment (ROI) over time. Below are some ways you can secure your future and live well when you are older.
Start Saving Now
The first step in building your retirement may be the simplest. Visit your bank, open a savings account, and start feeding into it every month. The cash adds up over time. Your savings account should have a minimum of three to six months of livable income in case you lose your job or experience a financial emergency.
Budget Your Money
There are countless online tools and apps that can help you put together a budget and stick to it. A budget helps you allocate money toward bills, expenses, savings, and other financial transactions. In short, it puts you in control of deciding where your money goes before you even get the next paycheck. A budget also helps you live within your means so that you are not suffering financially every month.
Blow Up Your 401(k)
Chances are, your employer offers a 401(k) plan. The 401k is a powerful way to accumulate tax advantaged funds for retirement. How do you take advantage of this? Max out your contributions. If you can’t max out, take full advantage of any employer matching opportunity. Otherwise, you are throwing free money away.
Open a Roth IRA (Individual Retirement Account)
Let’s face it. You don’t know if you’ll have the same job in five years. You don’t know if the company you are working for will be around in five years. Your 401(k) is a great start, but it won’t be enough. And you can’t depend on social security to take care of you when you retire. Another great option? Open up a Roth IRA and add to it every month. A Roth can give you a better ROI than a 401(k). Plus, when you start to withdraw from it at retirement, your investment income will be tax-free.
Seek Out a Trustworthy, Reputable Financial Planner
A financial planner can keep you on the right track and help you stay focused on building your wealth. They can assist you in creating a roadmap that expands your portfolio. A planner can also give you options for investing your money and provide sound advice when you are making major life decisions.
Financial Services from Boulay
Boulay works with individuals, businesses, and public entities to help ensure their financial success and stability. We are committed to helping you make the best decisions that secure your financial future.
To find out more about our financial services in Eden Prairie, Minnesota, contact us at 952.893.9320 or firstname.lastname@example.org.
Investment Advisory Services offered through Boulay Financial Advisors, LLC a SEC Registered Investment Advisor. Certain Third Party Money Management offered through Valmark Advisers, Inc. a SEC Registered Investment Advisor. Securities offered through Valmark Securities, Inc. Member FINRA, SIPC 130 Springside Drive, Suite 300 Akron Ohio 44333-2431* 1-800-765-5201
Boulay PLLP and Boulay Financial Advisors, LLC are separate entities from Valmark Securities, Inc. and Valmark Advisers, Inc. Prime Global is not affiliated with Valmark Securities, Inc. and Valmark Advisers, Inc.
File Download: Millennials: Here’s Your Guide to Retirement Essentials