Ohio Insurance Expert David Giertz Outlines 4 Ways Millennials Can Stretch Their Retirement Savings Further

Saving for retirement is one of the most important undertakings in life. While you may want to continue working beyond your 60s, that’s not always an option. Being prepared for retirement when the day comes is essential, and nobody wants to live with the fear of outliving their money.

But if you’re a millennial, David Giertz says that you’re probably already on the right path. An astounding 71% of millennials are already saving money by age 22. However, what they don’t realize is what to do with that money, or even necessarily how much to save.

If you start that early, typically you’re going to have to save 15-25% of your salary each year, in order to continue living your life in a similar fashion after retirement. But the key benefit of starting so early is having more money to utilize, and there are a ton of ways that you can maximize the money that you’ll have. David Giertz breaks down 4 different ways that you can make your retirement nest egg a little bigger than you might expect:

1. Look into a Roth IRA
While 401(k) payments are taxed upon retrieval, a Roth IRA allows you to take care of all of that ahead of time, and instead just save money that you can access during retirement without having to worry about taxes later on. This is perfect when you start out early, because you earn less at the start of your career, and you can benefit massively off of the savings on your income taxes on that early money.

2. Don’t just save money in general
One of the biggest mistakes that David Giertz sees are the people that have a general fund for saving money. Meaning, they have one savings account that they draw from for everything. This is a bad idea, because you don’t want to touch your retirement money ever. Until retirement. That’s what it’s for.

You need to have a separate rainy day fund. There needs to be money that you set aside for when things go bad, you have vehicle trouble, etc, and a fund that you never touch for retirement. Otherwise you’re going to end up eating through your savings every time something bad happens, and by the time you retire there’s going to be nothing left.

3. Volatile investments
Everybody talks about safe slow return investments, but if you’re starting out early you can take advantage of more volatile investments like stocks, without taking a loss. As David Giertz points out, you can invest in stocks early on, and have the chance at those investments paying off massively, on money that you can already have replaced later on in life.

This can be the perfect way to have a huge nest egg, instead of working with a more limited one that comes from safe investments. Investing early is key however, to ensure that you can limit the impact if they don’t work out.

4. Make a plan and stick to that .
As David Giertz always says, the main thing is planning. When he was the financial advisor for Nationwide in Dublin, Ohio, David saw customers that time and time again started saving without any type of plan in mind.
You need to set the goals for what you want to do in life. That means where you want to live, but also what you want to do in retirement. You need money to keep up with inflation, to deal with the everyday costs of living, but also to cope with other things you want to do in life. Do you want to travel, do you have ideas on the hobbies you want to take up. These are what you will need your money for, and you need to play accordingly.

Retirement is there to be enjoyed, but that’s only going to happen if you’ve come up with a good plan beforehand. David Giertz always stresses the importance of having a good plan.

Read David’s other article about financial planning here: http://frenchtribune.com/teneur/25356-david-giertz-says-financial-advisors-are-failing-not-talking-their-clients-about-social

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