Find Out How Other Home Owners Are Retiring 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.
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.
The summarize here are 8 points you should consider to hedge your familys finances, their future, and please do not rely solely on your 401K to help you through a hard 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. Speaking of bonds...your money is far safer in a bond than stocks and you don't have to worry about a stock falling and taking your investment with it.
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. 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. By creating an emergency reserve in a separate financial company or bank, which is not linked to your current bank account, will allow you to avoid little withdrawals that will eat up your emergency funds.
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. Health insurance coverage is an immediate necessity. The cost of having surgery is astronomical. For example if you where to injure your knee while climbing the stairs, the surgery could cost you well over $8,500 and the doctors appointments and follow could be any where in the region of $9000.
The goal is to begin working on one item at time so that you do not get overwhelmed. The key is to set a timeframe and ensure you are able to complete each goal to protect your retirement income 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.
The summarize here are 8 points you should consider to hedge your familys finances, their future, and please do not rely solely on your 401K to help you through a hard 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. Speaking of bonds...your money is far safer in a bond than stocks and you don't have to worry about a stock falling and taking your investment with it.
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. 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. By creating an emergency reserve in a separate financial company or bank, which is not linked to your current bank account, will allow you to avoid little withdrawals that will eat up your emergency funds.
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. Health insurance coverage is an immediate necessity. The cost of having surgery is astronomical. For example if you where to injure your knee while climbing the stairs, the surgery could cost you well over $8,500 and the doctors appointments and follow could be any where in the region of $9000.
The goal is to begin working on one item at time so that you do not get overwhelmed. The key is to set a timeframe and ensure you are able to complete each goal to protect your retirement income and your family in retirement.
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posted by Debt Consolidation Loan at
1:59 PM
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