Find Out How Other Home Owners Are Withdrawing 13 Years Earlier.
The economy is unstable and the stock market has been take us down memory lane back to the days of severe recession.
At this very moment the stock market is pretty uncertain and if you are banking on the financial systems recovering you could end up in crying over the losses, let alone any of the profits you have gathered over the years.
Briefly there are 8 points you should take into account to enclose the strength of your familys finances and their hope and dreams. Oh by the way, please avoid the mistake of relying 100% on your 401K to assist you through a tough time:
1.Depending your current financial situation, you should be saving 30-35% of your income into an interest bearing accounts fro example a bank savings account or credit union CD's. Here s why, you can get a rapid return over a shorter period at a elevated interest rate, without taking any more risk. When they the period has matured, simply transfer these funds into different high interest bearing CD and simply continue to reinvest the original amount and all of the interest you earned. The secret is to grow the CD to a optimal size so that you can split them into 2 CD's, keep investing the funds and simply observe the rapid growth due to the power of compounding interest, i.e. without taking any material risks. This will allow you to move the funds into the stock market when the time is right or once you have done your home work identifying potentially good stocks.
2. Take some of your 401K and roll it into an Roth IRA - and do not take all of your money out of the company sponsored 401K plan especially if they have company matching funds as this is free money for you to reinvest later when your 401K reaches a favorable size.
3. One of the safest investing vehicles in the market place are bonds...your money is much more safer when you invest in bonds rather than stocks. and you don't have to worry about a depleting stock market.
4. One of the worse mistakes is having a substantial amount of debts before you retire. There is no worse feeling than realizing you at your retirement age, and now you have to hunt for another job just to be able to payoff your debt. There you are standing next to some kid young enough to be your grandchild and having to call him/her boss. That is not a anyones idea of a good retirement.
5. Have the ability to become mortgage free while at an early age. Use the latest mortgage acceleration strategies available to you and become debt free faster so that you can pay off your mortgage 15 years faster without changing your lifestyle or paying extra towards your mortgage.
6. Set up an emergency fund in a separate account for those annoying little emergencies we all need petty cash for, so you are not tempted into dipping into your retirement funds.
7. When considering your insurance costs, a great idea is to have your home insured at the replacement value, not market value of the home. The same principle will apply for your car. You do not have want to have your car insured at the minimum state value when you reside in a better district or neighborhood. The idea is to have a better insurance coverage for your lifestyle and you may want to possibility of having umbrella coverage to reduce your insurance cost.
8. Health insurance and a prescription card are something that should be an immediate priority. Did you know that if you needed knee surgery to repair damage just the doctor visits alone could cost you over $6000 and the surgery could cost you nearly $9000.
The key is to protect yourself and your family in retirement. To be successful and achieve your goals you can set a timeline to address each of the points above, measure, and ensure you are actively taking the right steps to protect yourself.
At this very moment the stock market is pretty uncertain and if you are banking on the financial systems recovering you could end up in crying over the losses, let alone any of the profits you have gathered over the years.
Briefly there are 8 points you should take into account to enclose the strength of your familys finances and their hope and dreams. Oh by the way, please avoid the mistake of relying 100% on your 401K to assist you through a tough time:
1.Depending your current financial situation, you should be saving 30-35% of your income into an interest bearing accounts fro example a bank savings account or credit union CD's. Here s why, you can get a rapid return over a shorter period at a elevated interest rate, without taking any more risk. When they the period has matured, simply transfer these funds into different high interest bearing CD and simply continue to reinvest the original amount and all of the interest you earned. The secret is to grow the CD to a optimal size so that you can split them into 2 CD's, keep investing the funds and simply observe the rapid growth due to the power of compounding interest, i.e. without taking any material risks. This will allow you to move the funds into the stock market when the time is right or once you have done your home work identifying potentially good stocks.
2. Take some of your 401K and roll it into an Roth IRA - and do not take all of your money out of the company sponsored 401K plan especially if they have company matching funds as this is free money for you to reinvest later when your 401K reaches a favorable size.
3. One of the safest investing vehicles in the market place are bonds...your money is much more safer when you invest in bonds rather than stocks. and you don't have to worry about a depleting stock market.
4. One of the worse mistakes is having a substantial amount of debts before you retire. There is no worse feeling than realizing you at your retirement age, and now you have to hunt for another job just to be able to payoff your debt. There you are standing next to some kid young enough to be your grandchild and having to call him/her boss. That is not a anyones idea of a good retirement.
5. Have the ability to become mortgage free while at an early age. Use the latest mortgage acceleration strategies available to you and become debt free faster so that you can pay off your mortgage 15 years faster without changing your lifestyle or paying extra towards your mortgage.
6. Set up an emergency fund in a separate account for those annoying little emergencies we all need petty cash for, so you are not tempted into dipping into your retirement funds.
7. When considering your insurance costs, a great idea is to have your home insured at the replacement value, not market value of the home. The same principle will apply for your car. You do not have want to have your car insured at the minimum state value when you reside in a better district or neighborhood. The idea is to have a better insurance coverage for your lifestyle and you may want to possibility of having umbrella coverage to reduce your insurance cost.
8. Health insurance and a prescription card are something that should be an immediate priority. Did you know that if you needed knee surgery to repair damage just the doctor visits alone could cost you over $6000 and the surgery could cost you nearly $9000.
The key is to protect yourself and your family in retirement. To be successful and achieve your goals you can set a timeline to address each of the points above, measure, and ensure you are actively taking the right steps to protect yourself.
About the Author:
To determine how you can live a debt free lifestyle go directly to Mortgage Free Lifestyle Calculator and simply enter your information to gain access to a wealth of free information and guides
posted by Credit Counseling at
6:29 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home