Finally, Millennials Snag a Money-Savvy Win
Pop quiz: when’s the last time you heard a financial literacy tidbit that praised millennials?
I’ll wait.
Crickets?
Crickets.
Not anymore. Behold, the Wall Street Journal’s applause-worthy headline: “Millennials on Better Track for Retirement Than Boomers and Gen X.” You read that right. Millennials – the generation labeled as lazy, entitled, you name it, has just taken the title of “best prepared” when it comes to retirement. Yep, even better than their Boomer parents.
According to Vanguard, the company that facilitates retirement investment for millions of Americans, millennials are currently on track to replace 60% of their income from nothing more than retirement accounts upon reaching retirement. That is 10% higher than other generations.
The reason they credit with the millennial advantage? Default, automatic settings. Millennials were typically enrolled in retirement by default, forcing them to opt out. A percentage of their paychecks was deposited into retirement accounts automatically. Generations prior had to actively opt in. What’s that I hear? Passivity has become…profitable?
Know what else profits from passivity? Compound interest. The earlier you begin making money on your money, the longer it has to accrue and the more you’ll have in retirement.
Watch the Biz Kid$ hosts unpack the power of compound interest in our episode, “How to Turn $100 into $1,000,000.”
If people are going to label Millennials as passive, we may as well reclaim the label to our profit. In the worlds of the famous infomercial star, “Set it and forget it.” Use automatic retirement savings to your benefit. Let the interest grow, and others’ expectations on your generation get absolutely crushed.
Ready to slay expectations? Check out our book and course on the subject, “How to Turn $100 into $1,000,000.”
View Biz Kid$ episode, “How to Turn $100 into $1,000,000.”
