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Tip of the Week
Nearly one in three millennials have no money saved for retirement, and a quarter of millennials - people between the ages of 18 and 34 - report owing more money than they have currently saved, according to a survey released by the Indexed Annuity Leadership Council.
“This year, millennials finally surpassed all other generations and now make up the largest share of our workforce, which makes it so concerning that such a large portion of these young people are astoundingly unprepared for retirement,” says IALC executive director Jim Poolman.
Still, out of all generations, millennials are also the most open to retirement savings options that protect against stock market fluctuations and offer the opportunity for growth. According to the survey, 52 percent of millennials showed interest in products like fixed indexed annuities that provide guaranteed lifetime income while ensuring the principal investment is never lost.
“It’s no surprise that millennials, who entered the workforce after the tumultuous 2008 economic recession, are showing the most interest in products that can provide certainty against the unpredictability of the stock market,” Poolman says. “This certainty becomes even more important as our retirement landscape continues shifting to a more pay-for-yourself era.”
So how can millennials with nothing saved for retirement get started? Poolman has some basic tips:
1. Remember, every penny counts
When you’re young, you have time on your side, so put as much money aside as you can. This might mean skipping a night or two on the town or packing your lunch more often. While this doesn’t seem like much, making one or two small changes can add up to considerable savings.
2. Take free money
Consider contributing to your company’s 401(k) plan or any employer-sponsored available plan. Think of any plan your employer is willing to match as “free money.”
3. Balance your portfolio
As a young professional, you have the luxury to put some of your money into high-risk investments since your retirement is seemingly far away. However, for the safety of your future, it’s important to also consider adding more conservative savings products like health savings accounts or fixed indexed annuities that can provide much-needed balance to your retirement portfolio.
4. Start now
Don’t wait. It’s crucial to start saving for retirement as early as you can. The earlier you start saving, the more likely you are to meet your retirement goals. Even if you can only contribute 1 percent of your salary, anything is better than nothing, and it can add up quickly.
The IALC offers online calculators that can help you see how much you should be saving (taking into account your age and your retirement goal) and whether your current retirement savings will be sufficient.
— Brandpoint
BBB Watch
Summer for most people is the perfect time to go to a concert or take a vacation. For con artists, warm weather means their scam efforts heat up. Nationwide there are thousands of victims and millions of dollars lost to scammers. The Better Business Bureau is warning consumers of popular summer scams.
“Scammers have been putting a lot of effort into convincing consumers that they are the real deal,” said Steve Bernas, president and CEO of the Better Business Bureau serving
The top five summer scams of 2015 are:
- Vacation scams: Vacation clubs, free vacation offers, travel points and airline miles are just a few ways that scammers are trying to rip off consumers. Scammers are calling consumers with “free” vacation offers, and in return taking their personal information, debit or credit card which sets them up for identity theft.
- Moving scams: BBB records show in the past 12 months nearly 300 consumers have filed complaints against movers. The BBB warns of scammers who take advantage of the peak season.
- Ticket scams: Concert season takes place in the summer and with that comes an increase in ticket scalping. Scalpers are looking to take advantage of last-minute ticket buyers.
- Phony job scams: For high school and college students, finding a summer job is a priority. The BBB is warning consumers that seasonal job postings may not be as advertised.
- Door-to-door sales scams: Consumers need to watch for individuals who try to skirt various city ordinances that regulate door-to-door solicitors. They offer deals for everything from air conditioning repair to driveway paving.
— BBB.org