Remember the good ol’ days of pension plans and no-worry Social Security? Me neither.
For Generation Y, a hands-off retirement planned around Social Security — which recent reports say could be bled dry by 2033 if not sooner — or a pension are things of the past. Instead, 401ks are often the primary vehicle for retirement savings.
Still, many recent grads are sitting on the sidelines of their companies’ 401k … and maybe even aren’t 100% sure what exactly a 401k even is.
Have no fear, though. Jason Kolinsky of Kolinsky Wealth Management is here to break down the basics of the popular retirement savings vehicle, including what it is, how much you should contribute, what happens if you switch employers and so on.
In his view, young investors can take two simple but big steps to prepare for the future.
Step 1: Build yourself a cushion.
Step 2: Start putting money in a 401k account.
As Kolinsky put it: “I think the 401k is so important. When you are young and starting off, there’s not going to be any other means of retirement for you. Hopefully we’ll have Social Security, but who knows what it’s going to look like — probably not what it looks like now.”
Have a listen to learn more.
About Jason M. Kolinsky, CFP:
Jason Kolinsky is an Investment Advisor Representative with Kolinsky Wealth Management, LLC, an SEC Registered Investment Advisor, and Life and Health Insurance Producer for Kolinsky Financial Group, Inc. He joined the firm in 2007 and is a Registered Representative with American Portfolios Financial Services, Inc. Kolinsky Wealth Management and American Portfolios Financial Services are not affiliated. Jason obtained his Certified Financial Planner certification in 2012.
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