TEMPLE, Texas — We know that “Gen Z” for the most part is having a hard time cracking into the housing market, but how are they doing at saving for retirement?
Well, according to the Investment Company Institute, “Gen Z” households currently have retirement accounts that are three times that of “Gen X-ers” at the same age. So in this Money Talks, we talk about the different financial stages of life.
"It all starts with that first step, putting money in, having a plan, 5, 10, 15 years out and staying consistent with that plan, and usually when you do that the market rewards you handsomely," said Financial Advisor Rolandus Johnson.
According to Johnson, good habits are good habits at any age, and learning them young will serve you well because life comes fast.
"When talking to our clients, we take a lot of things into effect or into the equation there," Johnson told 6 News. "Age is one, time is the other. Financial situation currently versus what your financial situation could be in the next 5, 10, 15 years."
One thing is for sure, those 5, 10, or 15 years will come and that is why a financial advisor can help before those years sneak up on you!
“To a 40-year-old that maybe has three kids, your priorities will be way different than maybe a 20-year-old whose focus may be debt," said Johnson."Maybe to a 20, 21, 22-year-old, debt may be a huge deal, they may want to pay down student loans, whereas that 40-50-year-old, they've got kids nearing college in 5 or 10 years."
Remember, you may only have a few sheckles left over to save in your 20s, but boy will that make a difference when you get older.
"The 20-year-old, they are not really worried about retirement at this time, they are just looking for a good job," said Johnson, "Whereas the 40 or 50-year-old is usually in a pretty good job at that time, those are the high earning years and so their lifestyle or life stage is going to be different."
People love to ask, 'Well, when should I start investing?'
"One of my colleagues, we were meeting earlier this week and he said 'Well there's two great times to get into the market to invest,'" Johnson said. "One of those was a couple of years ago when we went through the down, I think it was 2020, and the other great time to invest is today."
Lastly, you work hard for your employer, so don't miss out on anything that they are offering you.
"My favorite saying is 'Take free money when free money is given to you,'" Johnson told 6 News. "So if you can put in six and they are going to match six, I wouldn't do more than six, I would just do that, now, as your income or your financial situation or job level increases or improves, then maybe we can go back and look at doing a Roth IRA or doing some other things in the investing world, but the 401k is one of the easiest 'set it and forget it' ways to start retiring or preparing or starting to prepare for retirement, so always take free money when free money is given!"
According to Empower data, 70% of Americans are in a retirement plan. But only 47% of “Gen Z-ers” say they currently save in a retirement plan.
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