Below is a list of some of my favorite money/personal finance articles from this past week. I’ve sifted through boat loads of articles on money, retirement, personal fiance, budgeting, paying off debt, and buying a home.
All of the below articles are highly relevant to the Millennial generation (Gen Y) and their money. Knowledge is power, and you are your single greatest investment, so continue to educate yourself on money and personal finances right here on this very blog so you can one day become financially independent.
This week’s best articles on money and personal finances, specifically for Millennials
Millennials May Have to Save 22% of Income for Retirement
A number of analysts predict that the slower growth of the U.S. economy after the Great Recession could cause stock market returns to fall from 7%, the current annual average, to a possible 5% in the decades to come. And that could hurt investors (especially Millennials). (NerdWallet)
Worried about the election’s impact on your portfolio? Markets are nonpartisan long term
“It’s understandable that investors might have concerns because of the different policy positions of the candidates and the strongly held views of voters of all political persuasions,” said Jonathan Lemco, Ph.D., a senior strategist in Vanguard Investment Strategy Group and former professor of political science at Johns Hopkins University. “But investors should invest for the long term and not subject themselves to the political whims of the moment.” (Vanguard)
A Wealth Building Strategy You Never Hear About
For many Americans, the lion’s share of their personal wealth is the equity they build up in their homes. Thus, the 15-year mortgage is one of the most powerful wealth building tools available to boost that wealth. It has the obvious advantage of enabling homeowners to be free of mortgage payments and retire sooner than a 30-year loan would have allowed for. (Investopedia)
How to Double Your Nest Egg for Retirement
The Employee Benefit Research Institute examined 24.9 million 401(k) plan accounts at the end of 2014. Of those accounts, 8.8 million had a balance for four consecutive years and 3.5 million had a continuous balance seven years running. These consistent accounts held vastly higher balances than the typical account. (Money)
What to Do If Your 401(k) Plan Has High Fees
The fees you pay within your retirement account reduce your investment returns and could cost you tens of thousands of dollars over the course of your career. While you can’t always avoid 401(k) fees, there are some ways to minimize fees and limit the impact on your nest egg. First, make sure you get your company match before considering alternatives to your 401(k). (US News Money)
The John Bogle Expected Return Formula
He says this formula currently gives him an estimate of stock market returns in the 4-6% range, well below the long-term average that falls in the 8-10% range. You could quibble with some of the details here but I like the fact that this is such a simple model.
(A Wealth of Common Sense)
Got a Raise? Here’s How to Avoid Lifestyle Creep
Life looks different for millennials. Rather than rushing out to get married and buy a home as previous generations seemingly did, today’s crop of young adults are taking their time. The median age for a first marriage has been steadily increasing since the 1970s and currently sits at 27 for women and 29 for men, according to the Census Bureau. (Investopedia)
Happy reading, my fellow Millennials.