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b'Ronald White of The Los Angeles Times recently wrote an article that nicely highlighted the retirement challenges faced by America\\u2019s so-called millennial generation. Ron\\u2019s article focused on Jonathan Ng, a 29-year old - the financial challenges he faced and the steps he took to make sure he saved enough for retirement.
Find Out If You Are Ready For Retirement
It all started like this. Jonathan, a part-time worker and free-lance web designer in Los Angeles, did not worry too much about his spending habits or about finding a full-time job \\u2013 as a result, he earned okay but did not have employer-sponsored health insurance, matching savings contributions and all the other perks that come with a steady job. Then, the 29-year-old got engaged and took an online quiz to see by when he could save enough money to retire comfortably \\u2013 at a website called Outer Worth that encourages millennials to consider their financial futures. The site\\u2019s at www.OuterWorth.com and I\\u2019d encourage everyone to take that quiz too, millennial generation and older.



Okay\\u2026 so Jonathan took that quiz and got the result\\u2026 it said, "WOOHOO! You could be a millionaire by age 87."

BAM!!! For Ng, who worked up to 70 hours a week at as many as three part-time jobs, the quiz result was a major shock because he thought he was doing enough to save for retirement, but clearly he wasn\\u2019t. It got him pretty worried because he was planning on soon marrying his sweetheart and looking at long-term goals such as buying a house, raising future children, saving for their college educations, having enough left for retirement, etc. So this quiz took him from worrying too little about his finances to worrying too much \\u2013 which I think is a good thing \\u2013 because at 29, Jonathan\\u2019s young enough to make meaningful changes to reach his life and retirement goals.
Millennials Need to Step Up Savings, Investments
Another, worrisome data-point for Jonathan\\u2019s generation - Moody\'s Analytics recently estimated that the savings rate for millennials had fallen from 5.2% in 2009 to minus 2% in 2014\\u2026 so not only are millennials not saving, they\'re spending more than they earn... in a time when this generation is burdened with more student loan debt than ever, higher unemployment and lower levels of wealth than their two immediate predecessor generations.

In addition \\u2013 career trends have also changed significantly. People like Jonathan see freelance jobs as viable career options and where they get regular jobs, millennials typically spend no more than 18 months at a job, on average, before moving to another, which often deprives them of retirement benefits if they leave before the standard four-years of getting fully vested.



A recent survey also found that two-thirds of millennials said they were saving only half of what they thought they should for retirement, and relatively few millennials had sought the services of a financial planner\\u2026 something financial planning experts routinely see with this younger generation\\u2026 and urge them to start saving for future expenses and retirement by resetting their spending, savings and investments.

So the \\u201cshocking\\u201d quiz result was exactly the kick-in-the-pants that Jonathan needed, and got him into \\u201caction\\u201d mode. For starters, he took some savings and paid off $8,000 in credit card debt\\u2026 and freed himself of expensive monthly interest payments. Next, he began to carefully track his spending so he could cut out non-essentials and go from over-spending to savings mode. He also reviewed his stock portfolio and realized that he wasn\\u2019t a great stock-picker \\u2013 he\\u2019d lost money on the stocks he self-picked\\u2026 so he wisely decided to end his stock-picking days and invest his money in a low-cost diversified portfolio that is automatically rebalanced.
Savings Tips for Millennials
Now\\u2026 while Jonathan\\u2019s case may sound pretty bad\\u2026 turns out, he\\u2019s actually in pretty good financial shape for a 29-year old. Luckily for him,'