In 2014, almost one-third of baby boomers had nothing saved for retirement. For those who did save, the median was around $200,000. This is a far cry less than the $1 million experts recommend for a 30-year retirement plan. Luckily, for millennials and Gen X, there is still plenty of time to craft an effective retirement planning strategy. Here are four tips to get you started.   Give Up the Love for Cash After witnessing the stock and real estate markets crash in the Great Recession, America’s millennials now mostly hedge their bets on cash investments. According to Forbes, cash investments yield returns of just 1.5% on average. While the stock market and other forms of investments are variable, the returns can be much higher. On average, the stock market yields 8% in annual returns. And, even in a decline, the people who can afford to wait out the market may benefit from its recovery.   Watch Out for Student Loans With the rising cost of obtaining a college education, no matter how well parents plan, most students need grants, scholarships and/or student loans. While paying off student loans is important, beware of spending all your money on paying off debt rather than saving up and investing some disposable income for retirement. You should definitely prioritize student loans, but not to the detriment of other financial goals.   Consider Home Ownership CNBC claims that it is better to rent than buy a home in today’s market. But, what does “better” really mean? For almost all calculations, what makes it better is that it is cheaper in the short run. However, for millennials and Gen Xers who can afford to purchase

Conventional wisdom says that life insurance is sold, not purchased. In other words, some people are reluctant to discuss the importance of owning life insurance, and others are simply unaware of the need to have life insurance. Although many large companies provide life insurance as part of their benefits package, this coverage may be insufficient. Who needs life insurance? If there are individuals who depend on you for financial support, or if you work at home providing your family with such services as child care, cooking, and cleaning, you need life insurance. Older couples also may need life insurance to protect a surviving spouse against the possibility of the couple’s retirement savings being depleted by unexpected medical expenses. And individuals with substantial assets may need life insurance to help reduce the effects of estate taxes or to transfer wealth to future generations. Types of Insurance Term insurance is the most basic, and generally least expensive, form of life insurance for people under age 50. A term policy is written for a specific period of time, typically 1 to 10 years, and may be renewable at the end of each term. Also, the premiums increase at the end of each term and can become prohibitively expensive for older individuals. A level term policy locks in the annual premium for periods of up to 30 years. Declining Balance Term insurance, a variation on this theme, is often used as mortgage insurance since it can be written to match the amortization of your mortgage principal. While the premium stays constant over the term, the face value steadily declines. Once the mortgage is paid off, the insurance is no longer needed and the policy

You know you want to enjoy your retirement, but getting to that point can feel difficult. Worried that you’re not saving enough? Trying to get your spending under control? These problems are common for many people who are trying to build their nest egg while balancing their budget, but these tips can steer you in the right direction.   Start Early The younger you start, the less you have to save, and if you’re not scrabbling to save at the end of your career, starting early frees up money in your budget during your working years. That said, regardless of your age, it is never too late to start saving for retirement, and there are tax incentives and special retirement plans designed to help people who need to catch up with their retirement goals.   Set Goals Set clear goals about what you want your finances to look like during your retirement. If you have a specific goal in mind, saving becomes easier because it’s more purposeful. You may not be as motivated if you’re just saving blindly.   Put Your Efforts to Work for You Look for the most effective saving methods. For instance, if your employer matches the first 2% of wages contributed to a 401(k), you should take advantage of that plan. With this type of set-up, you receive a 100% return before the investment even has time to grow. In contrast, if you simply put the funds in a savings account, you would merit a negligible interest rate. By choosing the most lucrative investments, you reduce the total amount you need to save and at the same time free up extra money for spending during your