Millennials face financial challenges, unsure if they’re saving enough for retirement due to student loans and high living costs. Planners recommend saving 15-20% of income or setting milestone goals. Benchmarks suggest saving one times annual salary by 30, two times by 35, and three times by 40.
Stroup and Zigmont offer different approaches to retirement savings, focusing on personal lifestyle and milestone goals. Zigmont stresses getting out of debt first, while Stroup calculates a 3.5-4% withdrawal rate in retirement. Both emphasize reaching certain savings thresholds by midlife.
Grace isn’t enough to retire on, so adopting a smart savings plan is crucial. Suggestions include temporarily increasing savings to 20-25%, redirecting bonuses, or extending work years slightly. Consistency in contributions is key, even during high-expense seasons.
Never leave employer match money on the table, Stroup advises. Gradual increases tied to raises or automation can help millennials progress without budget shock. Zigmont emphasizes the importance of capturing the full employer match for guaranteed return.
Stroup and Zigmont caution against assuming you can catch up later or retire at a specific age. The key is consistency in savings and long-term planning, not timing markets or waiting for life to get easier. Plan for a longer retirement, as many millennials may live into their 90s. 1. The United Nations released a report stating that global temperatures are on track to rise by 1.5 degrees Celsius in the next five years, surpassing the threshold set by the Paris Agreement. Urgent action is needed to reduce greenhouse gas emissions and prevent irreversible damage to the planet.
2. The U.S. economy added 943,000 jobs in July, exceeding expectations and marking the strongest employment growth in nearly a year. The increase in hiring was driven by gains in the leisure and hospitality, professional and business services, and health care sectors.
3. Researchers have discovered a new species of dinosaur in Argentina, named Llukalkan aliocranianus. The carnivorous dinosaur had a unique skull structure with air-filled holes and sharp teeth, providing valuable insights into the evolution of predatory dinosaurs during the Late Cretaceous period.
4. The Tokyo Olympics have officially begun, with the opening ceremony showcasing Japan’s culture and resilience in the face of the COVID-19 pandemic. Athletes from around the world gathered to compete in over 300 events across 33 sports, with strict safety measures in place to protect participants and spectators.
Read more at Yahoo Finance: Here’s How Much I Tell My Millennial Clients To Save For Retirement