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Millennials 1980 - 1994

As a Millennial...

It's never too early to start thinking about your retirement, even if it may seem like a distant milestone. By taking proactive steps now, you can build a solid foundation for your future financial security.

Additionally, if you are married or in a relationship where you are splitting expenses, it is vital that you and your partner are on the same page when it comes to what you value most and sharing collective goals for achieving your rich life.

Here are a few key strategies to consider as you begin preparing for retirement in 20 – 30 years:

  1. Determine Your Retirement Goals: Take some time to envision your ideal retirement lifestyle (include your partner if applicable). Consider factors like where you want to live, what activities you want to pursue, and how much income you'll need to support that lifestyle. By setting clear goals, you can better estimate the amount of money you'll need to save and work towards achieving those goals. HOMEWORK: Have 5 detailed retirement goals. Example: “I would like to play goal twice a week and belong to a private club. I plan on retiring in Florida so this will be a year-round activity and the average round of golf will cost $100.”
  2. Create a Budget and Stick to It: Establishing a budget is crucial for managing your finances, especially when you are getting started. Saving your first $100,000 is always the hardest. It is important that you and your partner understand each other’s opinions on spending, saving and money in general. Now is the time to get on the same page with each other and focus your discretionary spending on the things that you love while minimizing spending on the less important things. HOMEWORK: Track your income and expenses for three months to gain a clear understanding of where your money is going. Look for spending patterns and try to identify areas where you can cut back on unnecessary expenses and redirect those funds towards your retirement savings. Consistent budgeting allows you to live within your means while also allocating resources towards your future.
  3. Start Saving and Investing Early: Make no mistake about it, TIME is your greatest asset when it comes to building wealth. Begin setting aside a portion of your income for retirement as soon as possible. Consider opening accounts that are tax deferred such as a 401(k) or an individual retirement account (IRA) and contribute regularly. Take advantage of any employer matching contributions to maximize your savings potential. Additionally, start saving in an after-tax account. Even though you don’t receive a tax benefit, this type of account is much more usable during your working years. HOMEWORK: If you have a company retirement plan, familiarize yourself with the type of accounts they offer (Roth 401k, Traditional 401k, Employer Stock, etc), the investments available and the employer's matching program. 
  4. Educate Yourself About Investments: Familiarize yourself with different investment options and their potential returns. Podcasts, YouTube, news articles and financial television are just a few avenues available to you. You don’t have to become a Master of Finance, especially if you have hired a financial advisor but a base level of knowledge would be appropriate as you navigate the financial markets. Lastly, consider diversifying your investment portfolio by including a mix of stocks, bonds, and other assets based on your risk tolerance. While it's essential to be aware of market risks, historically, investing in a diversified portfolio has shown to generate higher returns over the long term compared to keeping savings in low-yield accounts. HOMEWORK: Watch 3 videos or listen to 1 podcast a week for 30 days straight discussing finance. 
  5. Minimize Debt and Manage Credit: Debt can significantly impact your ability to save for retirement. Review all your outstanding debts and prioritize paying off high-interest debts first, such as credit cards and student loans. Additionally, avoid unnecessary debt by living within your means. Your budget that you created in Step 3 will be your guide. HOMEWORK: itemize all our your debt and the interest rate attached to it. 
  6. Have Excellent Credit: Most individuals don’t think credit has anything to do with getting rich, but it does. If you think about it, all your large purchases are made on credit and people with great credit, save thousands on every purchase they make because of better interest rates.
  7. Continuously Monitor and Adjust Your Plan: As life progresses, your circumstances and goals may change. Once you have been able to accrue over $250,000 in retirement assets, start buiding yoru retirement plan. This is the time where a financial professional can help map out your current retirement projections as well as provide alternative options like retiring early or having more income. Lastly, regularly review and reassess your plan with this financial professional to ensure it remains aligned with your evolving needs. 


Remember, the key to building a secure retirement is consistency and discipline. You cannot run before you walk and you cannot become wealthy until you install the proper foundation for budgeting, saving, and making wise investment choices.


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