The Financial Future of Millennials

Many Millennials believe that having a financial advisor is not necessary. In fact, over 60% of adults don’t have a financial advisor of any kind. But the truth is, having a financial plan and strategy is not just for Baby Boomers with fat paychecks.

It may seem like an obvious statement, but those struggling to save and pay down debt have the most to gain from effective planning.

Here are some things that Millennials can do to maximize their financial wellbeing. Making a stable financial plan now is essential to setting you up for future success.

Retirement

Young adults have the huge benefit of time being on their side. But 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. Contribute the maximum possible amount that your employer will match.

Emergency fund

Life sometimes throws surprises your way. If you squirrel away, say 10% of your monthly income until you reach the goal of having three months’ worth of income stashed in a savings account, you can avoid the shock of not being able to cover an unexpected emergency expense. Things like a job loss, medical bills, or other major expenses can be stressful and costly, so it's important to be prepared.

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 or consolidate and transfer to a zero percent rate. It's essential to pay off 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