3 Myths Busted to Help Millennials Invest for Retirement

Jul 19

This article was originally posted on Forbes.com.
Written by Kimberly Hamilton, Founder of Beworth Finance.

A 2018 study found that about half of Millennials are under-saving for their retirement, and will have to work into their 60s and 70s as a result. There are several reasons as to why this occurs, including unprecedented amounts of student debt and lower-paying salaries than their senior colleagues.

However, there are also several myths among young professionals that deter them from contributing more towards their financial futures, at different stages of their careers.

When going solo (for entrepreneurs).

Myth: I don’t have an employer, I am the employer – so there are no options for me to save for retirement.

There is a rumor going around that retirement plans, or tax-advantaged investment accounts, are only for those employed full time at a company. But what if that employer is you? Trying to get your side hustle on?

As entrepreneurship and the gig economy become more popular, Millennials are in higher need of retirement vehicles that still offer the tax benefits they may have received through a “regular” employer.

Investing is one money move.
Are you ready for more?

Luckily, there are many different types of tax-advantaged retirement accounts available, if you’re starting your business or a solopreneur, including a Roth IRA, SEP IRA (which has much higher contribution limits than a Roth IRA) or SIMPLE IRA. [If you work and your spouse doesn’t there’s also a Spousal IRA]. And while there may be plenty of financial considerations to make when starting a business or going off on your own, how you and/or your employees will save for retirement should be prioritized as one of them.

Want to read the rest of the article? Check it out on Forbes here.

Don’t forget to check out the other articles and free tools from Beworth, like the Smart Money Moves Checklist or What’s Really in Your Credit Score? Guide.