How Much Millennials Need to Save for Retirement

Retirement can be the last course of life to be in the mind of millennials. But, life is getting tough by the time as the technology is taking over. Millennials now need to save 40% of their income as compared to 15% of the past saving plans. Right now, millennials are the ones in the toughest position and it can get tougher by the time of retirement.

However, let us do some math here to understand how much savings millennials need for the retirement plan and how they can make it happen.

Importance of Retirement Plan for Millennials?

The employment program is reshaping into automation, artificial intelligence, and machine learning along with a lot of other technological advancements. So, you need to invest more in on-demand skills and mental resilience including overall health. Because you need to be fit and mentally healthy to survive the wave of technological advancements.

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More importantly, you need a retirement plan for you to live a happy and joyful life in the last years. Besides of retirement plan, you can also consider life insurance for seniors, visit SeniorsLifeInsuranceFinder.com.

Experts About the Retirement

In 2016, the 17th Annual Transamerica Retirement Survey of Workers gave their perspective on the retirement for baby boomers, millennials, and Generation X. According to it, 72 percent of people contributing to 401(k) plans were born in 1979 and 2000 is around 72 percent and investing around 7% of their annual pay. And the other 30% invest more than 10%.

The same report shares the way boomers and Generation X had early withdrawals of their investments stating the major issues or debt pay-offs. So, millennials need to learn from the other generations and plan better.

So, you must be asking a question; how to plan your retirement budget?

How to Plan a Budget to Retire by the Age of 70 or Above?

Just assume that you have $23,000 in your IRA and you are planning to retire in the next 30 years. Moreover, you happen to manage to set aside $100 a month over the next three decades, you will end up with about $288,000 in total.

It is only if your investments in that IRA deliver an average annual 7% return for the remainder of your savings window. There may be other complications, but you can get through them while you’re planning retirement.

The question here is that if you are aiming to have this much amount at your retirement, how can you save it in this ongoing era of low wages and economic downfall?

1. Invest Early and Often

The main thing you need to do is to invest early and make it often. If you cannot 40% of your income, at least invest in the skills and health plans. Because by the time you retire, your skills and health can be core essentials to help you keep going.

2. Save Your Bonuses for the Retirement

Another plan is to start adding your bonuses to the savings account. So, next, when you are celebrating receiving a bonus, make it count by adding it into your savings account. In case you are not getting any raises or bonuses, you can still add some of the amounts from your income to save for a better lifestyle at the time of retirement.

3. Woman or Have a Family? Save Even More

Women generally dismiss the retirement plan. But they are more on the edge without a retirement plan. So, if you are a woman with or without a family, save even more.

Despite all the women equality protests, women are still facing low wage issues. So, if you are working around the clock and still end up with lower savings, you may need a better plan for your retirement. Therefore, start saving more by cutting more percentage from your income.

4. Have a Side Job

If you are dreaming about the comfortable retirement time and you don’t have enough income to cut 40% out of it, you can have a side job. Plan this job only for retirement and include the income in your retirement plan. It is just a way of planning for the long-term.

5. Pick Any of the Expense and Save It

We can increase our expenses and cut them off for our good. So, if you cut off some of the expenses, do it and include them in the retirement money. Yes, life is about living in a present, but the last years of your life shouldn’t be broke because you were busy living the life of the present.

Plan it accordingly and save for the days when you might want better health care and even a better lifestyle.

6. Invest in Different Plans

Invest in the 401(k) plan or choose IRA plans to smoothly plan your budget. Usually, all plans offer a tax advantage, but 401(k) and IRA are the hottest options in the market. For example, 401(k) contributions are made with pre-tax dollars, which reduces your taxable income. Roth IRAs, in contrast, are funded with after-tax dollars but withdrawals are tax-free.

So, find the institution offering these plans and start investing right now. All you need is to learn from the mistakes of boomers and other generations.

Final Thoughts

Ultimately, you need to prepare yourself for retirement. Do your math or listen to the financial experts to understand and manage your money accordingly. Millennials are hungry for the information and putting up important fights too.

So, they need to be mentally aware of their retirement plans too. Also, the job of the future is changing and you will need a safety plan to be healthy and fine.

Green Home Improvements to Attract Homebuyers

People’s desire to make a smaller footprint on a vulnerable planet affects the real estate market worldwide. In part this is due to the Internet’s power to inform and inspire, and it is partly due to who is buying the most homes. Millennials have made up more than half of homebuyers over the last few years. And millennials, surveys have shown, are willing to pay more for sustainability and the greenest possible living.

They often opt for new construction with the highest eco-friendly standards, but not every buyer will purchase a new home. Some millennials are not ready to make that financial commitment, and some will not be buying in trending locations that have lots of new green construction. So to attract buyers to an existing home, green home improvements can be a big win. Not only will the homeowner be doing the right thing by the planet, but also homes can sell faster and for more.

Although making green changes to an existing home can be complicated and expensive, there are many levels of improvement that vary in cost and difficulty.

What Meets the Eye

Green upgrades the buyer can see in an existing home make a difference. If you are upgrading, you can go more sustainable and energy-efficient in these areas:

  • Non-toxic paint: The volatile organic compounds (VOC) in some paint can damage air quality and lungs. Choose a low-VOC paint to get that fresh, neutral look buyers want.
  • Sustainable flooring: Replace worn-out floors with highly renewable bamboo, with responsibly grown and harvested hardwoods, or with natural linoleum products.
  • A cool roof: Renovate the roof with light-colored materials that reflect heat.
  • Energy-efficient appliances: Update the kitchen with appliances, and even faucets, that run on less energy and/or use less water.
  • Native plants: Refresh the landscape with plants native to the environment, that will need less specialty care products and that will support local ecology.

Energize

Green changes that make a home energy-efficient will attract buyers and also give sellers the ROI of an eco-friendly home. Because they save money, these improvements also make money and bring return on investment.

  • Update to a Smart Thermostat: A programmable thermostat ensures heating and cooling meet your needs without waste.
  • New windows: The U.S. Department of Energy reports that 25-30% of energy costs literally get sucked right out of old windows, where leaks in both directions waste resources and money. New windows also beautify a home.
  • Weather protection: If new windows are not an option, caulking and weather-stripping are also efficient.
  • Tankless water heater: Upgrade an old water heater that needs to go anyway with a tankless one, that heats water as needed. Why waste energy heating gallons of water all the time?
  • Recycled water: Systems for catching rainwater, or holding water from sinks and tubs (greywater) can save waste and money. This water can flush toilets and water gardens, among other uses.
  • Renewable energy sources: Depending on the climate, solar panels and/or wind turbines can provide energy in place of using other, non-renewing resources.

Before making green improvements, research is the seller’s best tool. Understand the options, costs, and benefits. An experienced real estate agent can advise on what green improvements are most wanted and bring the best ROI in the local market. Also make sure the home is appraised by someone experienced with green features, to make sure their real value is represented in the appraisal.