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Is it true that millennials are not sufficiently prepared for retirement independence? A recent study shows that 42% of millennials have not begun saving for their retirement. By following these simple steps, Millennials can get on the right track:

1. Start saving now

This is the most obvious tip, yet it is easier said than done. There are some easy ways to do this, especially if you are in your 20s. For example, kick old spending habits! Saving does not necessarily mean living frugally, but you should aim to spend less money than you bring in each month. This may mean making some changes to how you spend your money. Cut unnecessary costs where you can and start off the new year right with good saving habits.

2. Pick a retirement plan that is right for you

When you decide to participate in a retirement plan, you may have a variety of options to pick from. Two of the most common plans available are 401(k) Plans and Individual Retirement Accounts (IRAs).

Be sure to find out if your employer offers a company-sponsored retirement plan and find out if your employer matches your contributions. Millennials are not expecting Social Security to be there for them when they reach their retirement age, likely turning to their employers in order to participate in company-sponsored 401(k) plans.

Read more: 401(k) Plans vs. IRAs: What’s the Difference?

3. Plan ahead for your business

If you are a millennial business owner, there is a good chance that you are investing and reinvesting your money into your business and that there is little left over to save for retirement.

A retirement plan, particularly a 401(k) Plan, offers business owners benefits beyond just saving for retirement. Business owners can use a 401(k) plan to reduce the taxable revenue of their company and the owner’s taxable personal income. They can also use their own 401(k) account to finance their business venture and company operations.

4. Get professional advice

There are a lot of factors to take into account when hiring an investment advisor. When in doubt, you should seek an advisor to perform a complete assessment on your retirement readiness.

Search for an advisor that fits your budgetary needs, while staying focused on long-term opportunities as your retirement savings and personal assets grow. Things to keep in mind include but are not limited to cost, biases, and experience. When you are interviewing for an advisor, be sure to ask the right questions and take all of your budgetary and long-term growth needs into account.

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