Rushville Republican

Business

August 7, 2012

Humphrey: "Millennials" in good position to invest for the future

RUSHVILLE — If you were born anywhere from 1982 to 2001, or within a few years of this range, you are considered a "Millennial." As a member of this group, you share many things cultural references, familiarity with technology, attitudes toward work and family with others your age. And if you're one of the "older" Millennials, you and your peers have something else in common; specifically, you have a good opportunity to launch investment strategies to help you save for the future.

Why are you so well positioned to invest for the future? For one thing, it's because you have so much of the future ahead of you. As an investor, time is your greatest ally, for a couple of reasons. First, the more years you have to invest, the greater the growth potential of your investments. And second, by investing for the long term, you can help reduce the impact of periods of short-term volatility on your portfolio.

Furthermore, since you may be in the early stage of your career, you probably have yet to reach your maximum earnings and may be eligible to put in the full annual amount to a Roth IRA, one of the most effective retirement savings vehicles available. (Eligibility to contribute to a Roth IRA is phased out over a specific income range.) When you invest in a Roth IRA, your earnings have the opportunity to grow tax free, provided you don't start taking withdrawals until you're at least 59 and you've had your account for at least five years.

Even if you do contribute to a Roth IRA, you can still participate in your employer-sponsored retirement plan, such as a 401(k) if you work for a company, a 457(b) if you work for a state or local government, or a 403(b) if you work for a school or other tax-exempt organization. And you should indeed contribute to your employer's plan, because it offers some key benefits: Your earnings accumulate on a tax-deferred basis, and you typically fund your plan with pre-tax dollars. So the more you put in, the lower your taxable income. (Taxes are due upon withdrawal, and withdrawals prior to age 59å1Ú2 may be subject to a 10 percent IRS penalty.)

The amount you can afford to put into your 401(k) or other employer-sponsored plan depends on your earnings and other circumstances  but you should at least strive to contribute enough to earn your employer's match, if one is offered. Otherwise, you'll be walking away from "free" money.

All the money you contribute to your plan is yours, but if you leave your job before a specified vesting period  which often ranges from three to seven years Ñ  you may not be able to keep all your employer's contributions. Check your plan's rules to see how this applies to you.

Of course, since you, as a Millennial, are in the early stage of your working years, you may well be on the lookout for new job opportunities. But if you are close to being fully vested in your 401(k), you might consider waiting a few extra months or even a year Ñ  to take a new job, so that you can leave with the money your employer has contributed.

As a Millennial, you've got time on your side as you invest for the future. So make sure you take advantage of all the opportunities that come your way.

1
Text Only
Business
  • U.S. jobless aid applications fell WASHINGTON (AP) - Fewer people sought U.S. unemployment benefits last week, as jobless claims remain at relatively low levels that point toward stronger economic growth.Weekly applications for unemployment aid fell 14,000 to a seasonally adjusted 289

    August 8, 2014

  • Choose carefully when remodeling to boost home value With summer in full swing, home remodeling is top of mind for many homeowners. And by all the evidence, the return on home improvement investments has never been better. For most people, a home is their biggest investment. A home remodeling or replac

    August 8, 2014

  • bus-rv080114-citizens pic Citizens State Bank expands local team Citizens State Bank has announced Samantha Coon as a new teller who will serve the Rush County market. She will be working at our Rushville branch located at 1802 N. Main St., Rushville. She brings a tremendous amount of team building and customer se

    August 1, 2014 1 Photo

  • Edward Jones Moves Up on the FORTUNE 500 List RUSHVILLE - Financial services firm Edward Jones moves up on the annual FORTUNE 500 list, as published by FORTUNE magazine, in its second appearance in two years, according to the following Rushville area Edward Jones financial advisors: * Brian D Hu

    June 13, 2014

  • bus-rv061314-fussner release pic Fussner completes 2nd year at Institute for Organization Management WASHINGTON, D.C.-- Institute for Organization Management, the professional development program of the U.S. Chamber of Commerce Foundation, is pleased to announce that Sandy Fussner, Executive Director of the Rush County Chamber of Commerce, has recen

    June 13, 2014 1 Photo

  • U.S. businesses boost April stockpiles 0.6 percent WASHINGTON (AP) -- U.S. businesses increased their stockpiles in April by the largest amount in six months, signaling business optimism that future demand will keep rising. Business inventories rose 0.6 percent after a 0.4 percent March gain, the Com

    June 13, 2014

  • Farm Credit schedules ribbon cutting RUSHVILLE - Farm Credit Mid-America, an agriculture lending cooperative serving farmers, rural residents and agribusinesses throughout Indiana, Ohio, Kentucky and Tennessee, will hold a ribbon cutting ceremony on May 29 for their new office in Rushvi

    May 16, 2014

  • Purdue NExT online learning program launches global website, now open to individuals, businesses, industry WEST LAFAYETTE -- Purdue NExT, an online interactive learning program, has launched its global website, offering 25 new classes. Purdue NExT is an outgrowth of PurdueHUB-U, an online education initiative announced in 2012. It is based on HUBzero, a p

    April 25, 2014

  • Student business competition announces finalists, Demo Day presentations WEST LAFAYETTE - Three Purdue University student-based startups have advanced to the final round of the Boiler Mini-Accelerator Competition or "Boiler," where they will compete for nearly $10,000 in funding. The Boiler, a student-run business competi

    March 28, 2014

  • Congressman Messer honors training program Congressman Luke Messer has made it a matter of Congressional Record that he strongly supports the Manufacturing Matters fast track training program in Rush, Wayne, and Fayette counties. In the Congressional Record dated Feb. 25, 2014, he congratulat

    March 14, 2014

Featured Ads
AP Video
US: We Do Not Pay Ransom to Terrorists Ferguson Teachers Training to Deal With Trauma Jon Hamm on the Unrest in Ferguson Tit for Tat? McDonald's Shuttered in Moscow Life on the Professional Video Game Circuit TX Gov Perry in Washington: 'Confident' in Case Hospital Releases Two Missionaries Who Had Ebola Ramen Health Risks: The Dark Side of the Noodle NYC Doctor-in-chief Seeks Community Approach Indonesian Police Fire Tear Gas at Protesters Raw: Shots Fired in Liberian Shantytown DOJ, Bank of America Reach Record Settlement Raw: Cubavision Airs Images of Fidel Castro Raw: Grief After Deadly Airstrikes in Gaza Officer Who Pointed Gun at Protesters Suspended Kathy Griffin Challenges Minaj to 'a Booty Off' Johnson: Six Arrests, No Tear Gas in Ferguson Raw: Rescue, Relief Efforts at Japan Landslide Cadavers, a Teen, and a Medical School Dream California Drought Stings Honeybees, Beekeepers
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.