Starting early is always the key to improving your financial status. As time is on the side of millennials, investing and gain financial freedom quickly should be a key objective.
Millennials can start as early as now in terms of investing for their retirement, especially if they are planning to quit the rat race early. However, varying reports have claimed that millennials aren’t preparing for retirement, as they haven’t put away enough savings to retire early. In fact a NerdWallet study revealed that the retirement age for millennials has been pushed to 75-years-of-age, which exceeds the current retirement age by some way.
“Rising rent and increasing student loan debts have pushed the retirement age to 75 for college graduates,” based on the study. The problem with student loans is they also affect millennials attitude towards other investments.
However, some millennials were able to prove that it’s not always the case, and building for the future means that they were able to free themselves from corporate ties and jump start their retirement savings. Here are some foolproof tips to get you on the right path to safeguarding your future.
The fastest method to help you heighten your focus and money on retirement is by getting yourself out of debt. Notable debts such as student loans and credit cards need to be cleared before you can start making headway towards saving for your retirement.
Take some time to look over your list of outgoings and find an effective way to repay them. If there’s no need to get a loan or another credit card, then focus your time on clearing these debts as soon as possible.
Open a savings account if you still don’t have one and put in a certain percentage of your salary away for your future. A post by Forbes said that if you save at least 10% of your gross income, you will be able to retire with at least a million dollar in your bank account. Take advantage of the savings initiatives offered by employers to gain greater yields.
There’s no easy way to make more grow other than investing in long-term, high-returning investment opportunities. Apart from your 401(k) that can be used for different retirement investments, millennials are recommended by many financial advisors to start creating a well-diversified investment portfolio that can help them gain more in the future. A market insight report suggests forex trading is ideal for millennials as they have specific attributes that lend to becoming successful traders, such as their preference for conservative trading systems, a high affinity for technology and they have plenty of time to grow their money. The earlier they start investing, the sooner they will be able to retire.
Get a financial advisor
Managing your wealth and financial obligations may not be easy, so it’s advisable to hire a reliable advisor that can handle your money on your behalf. There are specific advisory companies that specialize in handling millennials, as they understand the attitude they have towards investments and their financial goals. They can also provide millennials with the best options to manage debts and handle savings to maximize their potential towards gaining financial freedom.