Guidebook: The Millennial's Guide to Retirement Savings and Investing
Renters Warehouse Blog
As millennials –we’re great at many things. Finding creative ways to cut expenses, making extra income through side gigs, sharing instead of buying…
But other things just don’t come that easily. Take, for example –retirement planning.
Many millennials, it turns out, tend to have a slightly distorted picture of retirement and what it all entails. Take, for example, the amount. Many of us vastly underestimate how much money we’ll need for retirement.Some 34% of millennials believe they need $200,000 or LESS to retire comfortably. (Do you fall into this camp?)
This falls far short of the $1.18 million recommended by AARP for a retiree withdrawing roughly $40,000 annually for 30 years. Couple this with the fact that many millennials have dreams of early retirement or financial security –and you can see how that 200k –just isn’t going to go that far.
Additionally, millennials hold an estimated 25% of their investments in cash; something that puts us at risk of seeing the value slowly but steadily dissolve with inflation.
Sure, you might be trying to sock away as much as you can, but with inflation eating away at the value of the dollar, finding a way to grow your money is your best bet.
Enter: investing –putting your money to work for you.
No matter what your ideal version of retirement looks like –whether it’s relocating to the Florida Keys, or an early partial retirement, investing is a key component part of long-term financial security.
From traditional 401(k)s to mutual funds, index trackers, real estate, bonds, commodities –and more, there’s no shortage of investment options to choose from. Of course, the downside to all of this, is that it can be challenging to make sense of it all. And when it comes to taking that first step toward investing, it can be difficult to know where to start. Not all investments are created equal. Likewise, there are tons of nuances within investments themselves (which REIT is best, for example) and then there are tax implications as well –both immediate and long-term.
Clarity is desperately needed.
That’s why we created this guide.
If you’d like to take control of your retirement, then this guide is for you. In it, we’ll cover most traditional investment options that are available today, and highlight alternative investments that can help to balance out a traditional retirement account –that’s usually very dependent on the stock market.
This guide covers:
- Creating an Investment Strategy – Assessing the Risks
- Different Investment Options, including:
- 401(k) – Traditional Retirement Accounts
- Roth IRAs
- Residential Real Estate (Not only can it help you to save for the future; it can also provide cash flow for the here and now!)
- Stocks and Shares
- Mutual Funds
- Exchange-Traded Funds (ETF)
- Index Tracker Funds
- Savings Accounts
- Certificate of Deposits (CD)
We’ll also look at one of the BIGGEST mistakes plaguing millennials when it comes to investing. (Hint: It comes down to failing to understand, and leverage, compound interest! If you can get this concept, you’ll be able to really start growing your portfolio. If not, you could end up losing money in the long-term.)
Get started today! Retirement may seem like it’s many years away, but the sooner you start investing, the more you’ll be able to accrue. Or, the less you’ll have to put aside each month in order to reach your retirement goals.
In the words of Mike Kerins, founder and CEO of RobustWealth,“The worst thing you can do in your mid-twenties to mid-thirties is not save money and invest. If you invest money early on, it gives your money a long time to grow.”
The best time to start investing is always ten years ago. The second-best time though –is now!
Your financial future is in your hands.
Claim your FREE guide: Millennial Retirement: A Guide to Saving and Investing –and start creating your financial freedom today.
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