I look at the millennial generation and see incredible opportunities for financial planning and wealth building. There's something about the spirit of this young generation. Many are exploring the possibility of early retirement and are eager to reach financial independence in order to do so. My advice is always to focus on acquiring assets.
Simply making a nice paycheck isn’t enough. Once it goes in your bank account, you will spend it. Instead, you need to build wealth that you can access once you retire. That doesn’t have to be overwhelming. Follow some wealth building strategies and get started today.
Start Small, Grow Big
Millennials often feel as if they have to put an enormous amount into investment accounts, but in reality, they don't. Let's say you start investing at the age of 25. You will just need to invest $5,000 a year to get your investment portfolio over $1 million by the time you reach age 65. Find out about asset building strategies that you can use to grow your investments. That will certainly ensure that you have a rewarding retirement.
Make the System Work for You
Millennials are understandably wary of the system. It seems like the rich get richer, and the government takes more than its fair share. It's possible for you to get yours, but you need to make the system work for you. One strategy is to reduce the amount of income taxes you pay. Put some of your money in a conventional IRA to cut down on your federal tax expenses. Then, add some to a Roth IRA, as well, so you won’t be taxed on it when you withdraw it.
Create a Financial Plan
If you’re in your 20s or 30s, the idea of thinking of retirement almost seems crazy. You don’t know where you will be in 30-plus years, so how you can think of retirement? Instead of looking that far into the future, create a three-year plan. Think of the goals you need to meet in three years and make it happen. When the three years are up, create your next three-year plan.
If you start building wealth today, your future will be secure. Then, you can live the life when you retire. You are young enough to get control of your finances and have the retirement of your dreams.
It’s never too early or too late to start building wealth. You don’t have to be a financial genius to build an amazing portfolio. Just let a financial planner get to work for you, and you can sit back and enjoy the spoils of your riches.
Let us help you plan ahead for growth!
Myrick CPA, specializes in individualized financial management and tax preparation plans. We work with you throughout the year in a process that combines smart, personalized planning with annual tax preparation and filing. Contact us to learn more: (202) 789-8898