• Millennials take a different route with retirement savings. While boomers were encouraged to contribute to a 401(k) or an IRA, millennials are increasingly looking towards Roth IRAs, Roth 401(k)s, S Corporations and a certain type of life insurance, Notchick says. They see the giant tax liability that awaits retirees who used those traditional tax-deferred accounts, and they want to avoid it. They prefer to pay their taxes now so they can withdraw the money tax free in retirement.
“Because of the size of their generation, millennials are going to have a major impact on the economy and on investing in the coming years,” Notchick says. “Don’t sell them short because many of them are very much up to the challenge.”' Source: Dennis Notchick, CFP - Registered Investment Advisor Representative and Certified Financial Planner with Safeguard Investment Advisory Group (www.safeguardinvestment.com) in San Diego, Calif