Every generation needs a strong and secure retirement plan. Although many millennials are early into their careers, it’s easy to understand why retirement is not a priority for most. Valley Federal Credit Union is here to help each millennial plan for retirement with tips and great services. Read on!
A Top Priority
In 2008, millennials witnessed firsthand the harsh recession that hit so many. Unemployment rates rose everywhere, making it difficult for many to find work, let alone plan for retirement.
According to a 2015 report by BetterMarkets.com, one in five millennials at that time were too deep in student debt to even consider saving up for retirement. Even those not deep in debt felt it was too daunting to start saving for retirement in an uncertain financial environment. Savings accounts can help millennials manage their finances and prevent overspending. These accounts also help in being prepared should an unforeseen financial bind occur.
Do Your Research!
Do your research when it comes to learning about planning for retirement and overcoming other money-related matters. Saving for retirement is an endeavor that can be extremely rewarding. The younger you start, the larger your retirement fund will be once you reach your 60s. Also, there are several options you can explore other than savings accounts. Roth IRAs are smart investments that can help you live comfortably after leaving the workplace.
Goal Setting and Prioritizing
Like most plans, your retirement needs goals. Set aside some time to prepare and plan on how much you’ll be saving on a weekly or bi-weekly basis, and be realistic. If you have a monthly income of $3,000, don’t set aside half of it, otherwise you’ll be left with too little to pay bills and spend on yourself. A more realistic amount would be $250-$500, but this all depends on how much you spend on utilities, rent, a car payment, etc.
List your goals in order of emergency, too. If you’re in debt, it’s best to settle it before even considering a retirement plan. If you’re married with children, future education costs may be a problem if you’re setting aside too much.
Lower Some Costs
Splurging on one’s self is something we all do from time to time. There is nothing wrong with treating yourself every so often, but doing so too often can put a real dent in your finances. This is why it’s important to set aside goals, and it’s also, if not more important, to sit back and reevaluate how you spend your money. If you own multiple credit cards that will take decades to pay off, your retirement fund will suffer, either by not growing or shrinking from having to use funds to pay off debts. Be smart on how much you spend now.
Invest if Possible
Start building your assets as soon as the opportunity becomes available. Millennials, for the most part, do little investing simply because they lack the finances or the market is not healthy. If debt is present, then investing in real estate, bonds or stocks is impossible.
If you’ve secured a well-paying job, then consider investing in a 401k, Roth IRA or certificates of deposit. Most large companies will enroll their employees in some sort of savings or retirement plan.
Plan Your Retirement with VFCU!
Don’t hesitate in building your retirement fund. Getting started now will only serve to ensure that once you’re ready to leave the workplace, living comfortably will be possible and well worth the effort. Our credit union in Brownsville wants to see you handle your finances in a responsible manner, so visit us to get started.