There are a lot of different things pulling at your funds. You have to meet your basic needs, but it’s tempting to spend any extra earnings on things like travel or material items that give you an instant reward. Retirement can seem far away and feel like something that can be saved for and thought about another day.

Here are three mistakes millennials may be making when it comes to keeping their retirement on track.

Pulling from your 401(k) early

If you have medical expenses, student loan debt or need to replace income during periods of unemployment, try to avoid pulling it from your 401(k). With financial challenges like large amounts of student debt, using this money for living expenses can be a tempting solution, but one that can cause more harm than good in the long run.

Prioritizing student loans before retirement savings

It’s no secret that millennials are struggling with student debt across the country. A repercussion of this is that they aren’t saving for retirement because they need to pay off student loan debt. If it’s at all financially possible, develop a strategy to put money into paying down student loans while still funneling some of that money into your retirement savings so that you can stay on track. It doesn’t take long to get so far behind that your retirement will be negatively impacted.

Not contributing enough to your 401(k) plan

Despite the majority of working millennials having access to employer-sponsored plans, they simply aren’t taking advantage enough. You should explore your options and make a plan to take advantage of any tools you have available to set yourself up for success later on.

Retirement and the need to plan for it is closer than you think and prioritizing your savings strategy now will save you from unnecessary financial struggles later on.  Whether you’re beginning to think about your long-term retirement financial goals or have parents who are retired and need financial help, always keep the idea of a Home Equity Conversion Mortgage (HECM)* home loan in the back of your mind.

A HECM loan allows homeowners to tap into cash from their home’s equity, and those funds can be withdrawn on a flexible schedule determined by the borrower.

Contact me today to learn more about your options, and let’s plan for a stable financial future together.

*(1) at the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; (2) charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; (3) the loan balance grows over time and interest is charged on the outstanding balance; (4) the borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and (5) interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment. This material is not from HUD or FHA and has not been approved by HUD or any government agency.