financial advice

Realistic Financial & Retirement Advice for Today’s Workforce

March 15, 2022

March 15, 2022: Any time money becomes the topic of conversation, somebody is likely to jump in and offer a litany of unsolicited advice. They’ll tell you how to earn it, where to invest it, and when to spend it — but the problem is, finances are never a one-size-fits-all issue. On the contrary, many of the money management principles that led prior generations to wealth are simply unattainable today. This is especially true when it comes to big expenditures like developing a retirement strategy or saving money for a down payment on a house. If you’re seeking out realistic advice for retiring in today’s workforce, you can start by disregarding the following four pieces of outdated advice.

Work While You’re in College

Some people in the baby boomer generation and beyond hear millennials complaining about exorbitant tuition and offer this well-intentioned piece of advice — “why don’t you work your way through college?” Unfortunately, the growth of tuition has far outpaced the growth of wages, meaning that this is no longer a viable plan. Instead, students should apply for scholarships, or if necessary, take out student loans. Many student loans can be refinanced after graduation with a lower interest rate.

Stash Money in Savings Account

Savings accounts are often treated as a financial fix-it, but most people nowadays understand that they aren’t as lucrative as they used to be. While there is a nominal interest rate attached to most, it’s barely enough to offer any worthwhile growth, and there are plenty of other ways to save that will offer better returns. The stock market has the potential to be volatile.  You are likely to see much better returns on a small investment than you would if you kept money in savings. An Annuity plan is a safe and dependable investment for your future retirement.

Buy a House as Soon as Possible

For decades, houses were cited as a foolproof investment. They gain equity and they symbolize financial security — what could possibly be better? Many younger people are questioning this logic, though, and realizing that homeownership just  isn’t unattainable. In many cases, it’s also inadvisable. For young people who want to travel, move, or enjoy a more flexible life, buying a home simply isn’t the best option. Renting is often cheaper and demands less commitment.

Invest in Savings Bonds

Many young people were gifted savings bonds on their birthdays and promised that they would someday grow into riches. This often is not the case, though. This form of savings isn't a viable form of retirement planning. It's incredibly low-risk, but it’s also incredibly low-reward, making it a lackluster option for growing your cash. Just like stashing money in a savings account, you simply won’t see substantial returns. Invest in the stock market instead for a better retirement strategy.

About 1891 Financial Life

At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.

Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.