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Medium or "grande" coffee at Starbucks ranges in price from $1.95 for the no frills fresh brewed version to $4.35 for a white chocolate mocha or caramel macchiato. The example here is the second cheapest, caffe latte, for $3.65. Two per week from age 25 to 65, assuming 7% tax (order it "to go" in California and you don't pay tax), equals $16,246, not counting inflation. Add in two inexpensive lunches per week at $15 each (tax included), no inflation adjustment, and there's $66,768. With the coffee, this savings equals $77,584, for simplicity's sake. Factoring in inflation and minimal interest takes the number over $100,000.While no one is advocating an austere lifestyle of no movies, entertainment, coffee or lunch out, there are many places to trim unnecessary expenses across decades that nets some real money. If a 25-year-old begins saving $4,000 per year with a 10% return, he or she will find a $1,947,407 balance before turning 65. Starting one decade later brings that balance down to around $723,773.
The good news is that some people are getting the message ~ perhaps from seeing parents or grandparents lose a job or struggle in retirement or the scary stock market dips of 2002 and 2008. Despite carrying the burden of college debt, Millennials are saving in record rates, some more than their older counterparts. A whopping 74% of 20-somethings have landed a job and begun to enthusiastically plan for retirement with nest eggs already topping $30,000.
A Transamerica Center for Retirement Studies report calls them "retirement super savers." They benefit from widespread automatic enrollment in a company's 401(k) as soon as they starting working. The findings point to Millennials contributing an average of 8% of their salaries to a 401(k) plan. Additionally, more than one quarter increased their contribution amounts last year. While the independent streak of the Greatest Generation and Baby Boomers may have kept them from seeking a financial advisor, more than 60% of Millennials rely on professional advice.
"Everyone is honored at Evans Financial Group with that kind of no minimum approach that welcomes the young professional, Millennial starting a family, the person who has saved a little bit and anyone who wants to plan today for retirement, whether it's next year or off in the distance by 40 years," states Dave Evans, founder of the firm. With son Colin and a staff that's like family, the company offers the kind of advice and strategies that someone would extend to one's own mother.
While reports and financial magazines lament how many Americans are ill-prepared for retirement, there are moves afoot to save early and plan well. Books like "Rich Dad, Poor Dad," "The Millionaire Next Door," and "I Will Teach You to Be Rich" continue to sell and impact thousands of readers. Dave Ramsey and Suze Orman inspire millions to reduce debt, not spend more than you make and plan ahead.
With a message that it's not about being well-heeled or having a boatload of money to begin with, Evans outlines important phases of the financial life:
- Accumulation phase during working years
- Preservation and conservation phase
- Distribution or legacy phase.
"Risk levels drop with age," Colin Evans explains, "and the goal is to have all hands on deck for every client, letting them know how much they are cared about before talking long or short-term strategies. Caring Financial Strategies for the Real World is a slogan which recognizes that clients work in the real world, have real concerns and real goals. Gratitude often spills out in a hug."
Magazine and newspaper articles are surfacing all the time with doom and gloom on retirement preparation. Many are noticed by young professionals, who respond by figuring out how to save a little every week and find a financial advisor who will move a three-digit savings account to twice that across the years. Those who start by sacrificing the Starbucks now may be able to buy something at Starbucks any day of the week in retirement.
Contact Info:
Name: Dave Evans, CEO & Colin Evans, Managing Partner
Email: Send Email
Organization: Evans Financial Group
Phone: 318-629-4852
Website: http://www.evansfinancial.com
Source URL: http://councilofeliteadvisors.com/liftmedia
Release ID: 77675
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