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 59å1Ú2 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 - 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 - 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.
Business
"Millennials" in good position to invest for the future
- Business
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Dream Home contest winner
Pictured (left to right) are Michael Davis, BMO Harris Bank, winner Scott Adkins, Katie Adkins, their children, Debbie O’Neal-Leisure branch manager BMO Harris, Hubert the BMO Harris mascot, Laura Simmonds, Christine Lykins and Steve Eichler of BMO Harris.
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Wells Fargo makes lead gift to RMH Pediatrics
On behalf of Wells Fargo Bank, Bruce Everhart, Marissa Taylor, and Theresa Alexander recently presented $5,000.00 towards the Rush Memorial Hospital Foundation Kedo’s Kids Campaign to Rush Memorial Hospital President and CEO Brad Smith and RMH Foundation Executive Director Faith Mock.
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Local American Family Insurance agent Kevin L. Snyder recognized
Kevin L. Snyder, an American Family Insurance agent in Rushville has been recognized for providing outstanding customer experience under the American Star Excellence in Customer Experience Certification. Snyder joins other American Family agents who have demonstrated the highest level of commitment to outstanding customer service.
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Should you take a pension buyout?
Have you recently received a pension buyout offer? If so, you need to decide if you should take the buyout, which could provide you with a potentially large lump sum, or continue accepting your regular pension payments for the rest of your life. It’s a big decision.
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Fussner to attend Chamber Institute
The Board of Directors of the Rush County Chamber of Commerce is pleased to announce that Sandy Fussner, executive director of the Chamber, will be attending her first year of the Institute for Organization Management at the University of Wisconsin in Madison, Wis., from June 2 to June 6 this year.
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Should you take a pension buyout?
Have you recently received a pension buyout offer? If so, you need to decide if you should take the buyout, which could provide you with a potentially large lump sum, or continue accepting your regular pension payments for the rest of your life. It’s a big decision.
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Full Service Day at Admiral
Admiral Service Station will take you back to the days when your gas was pumped and windshields cleaned for a Relay for Life fundraiser from 10 a.m. to 4 p.m. May 25 at Admiral Service Station, South Main St., Rushville.
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Trane celebrates a 100-year legacy
Trane, a leading global provider of indoor comfort solutions and services and a brand of Ingersoll Rand, is celebrating its centennial anniversary of delivering performance, innovation, commitment and knowledge to its communities.
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Broadband Networks Wireless Internet announced as new brand name for Omnicity
Broadband Networks has announced Broadband Networks Wireless Internet as the new brand name for the company formerly known as Omnicity, Incorporated. Broadband Networks purchased the Rushville-based, wireless broadband Internet service provider in December 2012.
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Job Fair to be held in Greensburg
A major Job Fair will be held in Greensburg Thursday, April 25, 2013. This event will take place from 11 a.m. until 7 p.m. at the Greensburg City Hall Auditorium, 314 West Washington Street.
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