It’s easy to think of Millennials as those still in college, or maybe in their early twenties, but they were born between 1996 and 1980, which means they are between 25 and 41.
It’s easy for those on the younger side to not having any savings for retirement, but those in their thirties and forties should have have a plan, and be working on it, especially given the current situation with social security. Many people estimate that social security will not be able to cover even 20% of their monthly expenses when they retire.
If they are right, that means its even more important to start saving, and investing.
I recently spoke with someone who recently started saving for retirement in their mid-thirties. They are behind, and they know it, but they’ve at least started at 2% of their salary. They are also working on paying down their debt, and will contribute more later on.
There are three keys to getting enough money in your retirement account:
- Start Early – The earlier you start, the longer your money can grow with interest. Interest is a game of time, and the more time you have, the better. The best time to invest was 20 or more years ago, the second best time is today.
- Invest a percentage automatically – If you tell yourself you’ll put something aside, you’ll always find something else to spend. Instead, take advantage of a 401k at work or an automated draft.
- Invest wisely – know what risks you’re willing to take, and how much you can both gain and lose. The younger you are, the more risk you can probably absorb.
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