Millennials are preparing for retirement through various ways. David Giertz notes that those are bad and good news, explaining that some of them are beginning the retirement preparation at the age of 22. David indicates that the bad news is that most of the millennials are not well-informed on the best ways of using the money they save for investment. David Giertz gives effective ways that millennials can use to plan more efficiently to use the money they save for retirement and make a bigger difference.
Make compound interest your best friend
One of the smartest things you can do when planning for your retirement is taking advantage of compound interest. David Giertz, a financial advisor, explains the two reasons why a Roth IRA is a good idea. He notes that since your money is taxed before making deposits and you can access it tax-free after you retire. That means that you have already paid for the money. The other reason, according to David, is that you have the opportunity of building more compound interest as you add money throughout your life if you start saving early. You will be amazed by how much money will be in your account by the time you are done.
Always evaluate your financial health
It is an important thing to consider because you need to ensure that you have enough money to take care of essential bills and at the same time have enough savings. To achieve this, you need to pay off your debts as soon as you can. When it comes to retirement saving, you will have to be fast enough. David encourages young people to start saving for their retirement early and nicely. You need to get all your debts including college debts, credit cards, home loans, and car loans and move on immediately.
Come with a side gig
One of the best ways of earning money for retirement savings is by getting a business or side hobby that gives you financial benefits. David notes that people should find out what they like doing then translate it into economic success. David Giertz has experience of more than three decades offering professional financial services.