Millennials envision a self-funded retirement. They primarily save their retirement funds in company-sponsored 401(k) plans or their own IRAs. While they recognize the importance of saving and starting early, these young minds often do not understand how their money is invested. Tip: Become educated about the “what” and “why” of your retirement portfolio.
Generation X knows how to utilize a company-sponsored plan. However, this generation should seek out more information about an important rule known as “catch-up” contributions. The “catch-up” rule allows additional contributions to retirement savings vehicles such as 401(k)s and IRAs once you’re above age 50. Tip: Take advantage of these extra savings and make “catch-up” contributions.
Baby Boomers did not have the advantages of a company-sponsored 401(k) plan when they began their careers, and those without pensions may be playing catch up for missed savings in their younger years. This generation values hard work and enjoys the challenge of their careers, which entices them to continue working and saving. Tip: Do not get so caught up in your work life that you miss important—and costly—Medicare deadlines!