Millennials and Financial Security
The oldest of the Millennial generation are now reaching age 35. If ever there were a time to take a look at your financial landscape and assess one’s future, now would be that time. Under 40s have an advantage in that they have a comparative wealth of time to plan for retirement and allow smart financial investments to mature.
Making a solid financial plan now is essential to setting you up for success later in life.
Here are three key things you can do:
Maximize benefits of an employer’s 401(k) plan
A big mistake from younger investors is that many just do not fully understand the benefits of a 401(k). Many companies will match your 401(k) contribution up to a specific percentage, which is free money that you should be taking advantage of.
Start an emergency fund
It’s a good idea to have at least three months’ worth of income stashed away to cover the financial surprises that life sometimes throws your way. At face value, that may seem like a lot of money, but if you squirrel away, say 10% of your monthly income until you reach the goal of three months’ worth, it becomes a lot more achievable. Unexpected events, such as a job loss, medical bills, or other major expenses can be stressful and costly, so it's important to be prepared.
Get out of debt
Tackle your debts one at a time, starting with the highest interest ones first. Find ways to pay off high-interest-rate credit cards. It's essential to pay off these credit cards as quickly as possible to avoid accumulating interest and other fees that can be very costly.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC