This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Retirement Savings Tips Every Millennial Should Know

Put all raises toward your 401(k)
One good way to increase your retirement savings is to put all raises that you get toward your 401(k) until you reach the $17,000 annual contribution limit for those under 50.

"The idea is that if you're making do with what you earn now, you can put your entire raise toward your 401(k) and save for retirement," Regli says.

Don't borrow against your 401(k)
Many 401(k) plans allow you to borrow money from your account for up to five years, but Regli says you should avoid the temptation.

"You're contributing this money for your retirement, so you should try to leave it in your 401(k) for that purpose," she says.

On paper, 401(k) loans sound great.

You can usually borrow up to $50,000 or 50% of your 401(k) balance (whichever is lower) for any reason, and you generally pay the money back over five years through payroll deductions.

There's no credit check, and the interest you pay actually goes back into your 401(k) account -- meaning loans are essentially interest free.

But the funds you borrow will be out stocks or other investments until you pay the money back, so you'll miss out on potential gains.

"When you take money out of your 401(k), you're not giving it the time in the market that it needs to grow," Regli says.

Don't treat your 401(k) like a glorified savings account
Companies will often send you a big check with your 401(k) balance if you leave your job -- money many Millennials will run out and spend rather than "roll over" into another retirement account.

That's a bad idea, Regli says.

"That's money that you're saving for retirement," she says. "If you go out and buy a boat with it, what will you have left for retirement?"

Instead of spending your 401(k) proceeds, you should deposit them in a rollover IRA or similar account within 60 days, Regli says. That way, you'll not only keep the money for retirement, but avoid income taxes and early withdrawal penalties on the funds.

Better yet, have your 401(k) plan deposit the money directly into another retirement account for you. That will ensure you don't miss the 60-day deadline for avoiding taxes and penalties.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%
TSLA $241.80 0.43%
YHOO $36.53 -0.19%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs