Find Out How Other Homeowners Are Leaving 13 Years Earlier.
Our stock market is unsteady and the latest turn in the financial markets has summon some rather nasty thoughts, back to the days of a miserable and gloomy economy.
Right now stocks are actually pretty risky and if you are bank rolling on the stock market you could end up losing the money you invested, not just any profits you have made.
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. You should be saving 30-35% of your take home pay into interest bearing accounts like bank or credit union CD's that you can save for shorter periods of time at higher interest rates. When they mature roll them into another high interest bearing CD and just keep reinvesting the initial amount and the profits. When they get to a favorable size split them in two CD's and keep investing the money and watch it compound and grow a lot faster and safer. Over time slowly invest back into the market using dollar cost averaging.
2. Move a portion of your 401K into an Roth IRA " the point is not to take all your money but rather just a portion of your employer sponsored 401K plan especially if your employer has a matching contribution to your 401K. This is free money for you to grow your 401K.
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. Avoid having debt in retirement. There is nothing worse that working at your local hot dog stand just because you dont have enough money to pay your bills. What gets even worse in retirement, you end up working for a kid old enough to be your grandkid, and calling him boss so that you can keep your job. The point is eliminate your debts before you retire.
5. Paying off your mortgage while you are young, will allow you to invest in other assets and grow your net worth rapidly. By using a mortgage accelerator strategy, you can become mortgage free 15 years faster, without changing your lifestyle or paying one cent extra towards your mortgage.
6. Ideally, you should be setting up an emergency reserve in a separate isolated account, away from your normal bank account or checking account. This will prevent you from depleting your emergency funds or your retirement income as it will be harder to continuously making withdrawals from your emergency savings.
7. Consider having your home insured at replacement value, not market value. The similar action for your autos. Do not insure your auto at state minimum if you live in an expensive neighborhood. It would be better to have a higher standard of insurance and invest in an umbrella coverage.
8. Getting sick or injuring, yourself could deplete your savings or 401K if you do not have proper Health insurance. Just to elaborate, imagine slipping in the bathroom or injuring your knees. Therefore, you know that you could pay in the region of $6,000 just for the surgery and well over for doctors visits. Which is ridiculous.
Just start working on the items in the checklist one at a time or set some goals to make sure that you are on your way to protecting you and your family in retirement.
Right now stocks are actually pretty risky and if you are bank rolling on the stock market you could end up losing the money you invested, not just any profits you have made.
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. You should be saving 30-35% of your take home pay into interest bearing accounts like bank or credit union CD's that you can save for shorter periods of time at higher interest rates. When they mature roll them into another high interest bearing CD and just keep reinvesting the initial amount and the profits. When they get to a favorable size split them in two CD's and keep investing the money and watch it compound and grow a lot faster and safer. Over time slowly invest back into the market using dollar cost averaging.
2. Move a portion of your 401K into an Roth IRA " the point is not to take all your money but rather just a portion of your employer sponsored 401K plan especially if your employer has a matching contribution to your 401K. This is free money for you to grow your 401K.
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. Avoid having debt in retirement. There is nothing worse that working at your local hot dog stand just because you dont have enough money to pay your bills. What gets even worse in retirement, you end up working for a kid old enough to be your grandkid, and calling him boss so that you can keep your job. The point is eliminate your debts before you retire.
5. Paying off your mortgage while you are young, will allow you to invest in other assets and grow your net worth rapidly. By using a mortgage accelerator strategy, you can become mortgage free 15 years faster, without changing your lifestyle or paying one cent extra towards your mortgage.
6. Ideally, you should be setting up an emergency reserve in a separate isolated account, away from your normal bank account or checking account. This will prevent you from depleting your emergency funds or your retirement income as it will be harder to continuously making withdrawals from your emergency savings.
7. Consider having your home insured at replacement value, not market value. The similar action for your autos. Do not insure your auto at state minimum if you live in an expensive neighborhood. It would be better to have a higher standard of insurance and invest in an umbrella coverage.
8. Getting sick or injuring, yourself could deplete your savings or 401K if you do not have proper Health insurance. Just to elaborate, imagine slipping in the bathroom or injuring your knees. Therefore, you know that you could pay in the region of $6,000 just for the surgery and well over for doctors visits. Which is ridiculous.
Just start working on the items in the checklist one at a time or set some goals to make sure that you are on your way to protecting you and your family in retirement.
About the Author:
To determine how you can become debt free today and slash your mortgage without scarifying your lifestyle, please go to the Mortgage Acceleration Calculators . You can retire within your original planned schedule and live a debt free without sacrificing your lifestyle.
posted by Credit Counseling at
7:39 AM
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