How millennials can build a retirement nest egg
The key to living your best life in your golden years is to begin investing early according to the author of “Everyday Millionaires” Chris Hogan.
However according to Charles Schwab, only 37 percent of young people are investing their money while a little over a decade ago, nearly 52 percent of this group were investing.
But Hogan said young people have a number of investment options available to them such as 403Bs and Roth IRAs. Young investors should also not be flustered by the currently volatile markets, he said. It's also critical to remain calm, have a long-term plan-- and stick to it, he said.
According to the St. Louis Federal Reserve’s director of the Center for Household Financial Stability, Ray Boshara, “despite the recent volatility, current and historical gains remain really impressive—and millennials certainly have the long time horizon necessary to realize those gains.” Boshara also noted that millennials are optimistic about their future finances, despite only three in five of them having stock market exposure and, generally, not believing Social Security will be there for them.
Hogan laid out a plan for young people to follow. He advised millennials first to get themselves out of debt. Following that, they should put themselves on a budget and begin creating an “emergency fund of three to six months of expenses.” Once that has been achieved “you start to invest 15 percent of your income.”
Hogan assured young people following his plan that they will be okay.
“I want America to take back our future by getting focused on a plan right now,” he said.