Last Minute Advice for Generation Y
So, before you go out and become independent, super-saving, members of the Generation Y workforce, here are a few more pieces of advice on how to make the most of your savings, and help yourself save more!
- Make sure to request a student loan interest tax deduction According to William Perez at About.com, “Student loan interest is a tax deduction found in the adjustments to income section of Form 1040 or 1040A.
That means you can take this deduction even if you don't itemize or in addition to any itemized deductions.” You can deduct student loan interest on loans issued for yourself, your spouse (if you file together) and for your dependents.
- See if your employer can match your 401(k) funds or offer a Roth 401(k). If they do, you should try to contribute enough money to receive the full match. If you can, you should, otherwise you are literally passing up free money.
- Set a timeline and estimate how much you WILL need for retirement. From the point you begin saving for retirement, you need to establish a realistic timeline and milestones that you hope to reach by your desired retirement age. You should also consider how much you will need for the things you hope to do post-retirement. The Ballpark Estimate can help you estimate these numbers.
- Consider pushing back retirement. Considering the current economic climate, many expect to retire much later than once initially planned. While this can be disheartening, realize that the longer you work, the more comfortable you will be in your retirement years; you might even have enough to travel the world!
- Seek guidance. A surprising number of Generation Y workers are looking to financial advisers before their friends and family, or even news outlets (42 percent to a paltry 33 and 21 percent, respectively). If you are concerned about financial planning, going to an expert who can calculate your expenses, while keeping mind of your income is a great option. CCCS counselors can work with you privately to help you develop a budget, figure out your options, and negotiate with creditors to repay your debts. Call 1-800-388-2227 or visit http://www.nfcc.org/ to locate the office nearest you.
Although it may seem daunting, saving for retirement is something we can all do. And if you plan, and take the necessary actions, saving for retirement is something you can look forward to, not dread.