Can You Retire Debt Free And Is Your Retirement Protected?

Can You Retire Debt Free And Is Your Retirement Protected?

Our financial system is wobbly and the financial trading system has recollect some rather unpleasant memories, back to the days of great depression.

At this very moment the financial market is pretty vague and if you are banking on the stock prices changing you could end up in desperate tears over the losses, let alone any of the gains you have gathered in your portfolio, over the years.

In a nutshell, here are eight things you should all ready be doing to protect your financial future and not just plan on the company 401K to get you through it:

1. You should try and save at least 30-35% of your income into interest bearing accounts akin to a savings account or credit union CD's. Here's the reason for my madness, you can get a rapid return over a shorter period at a elevated interest rate, without taking any more risk. When they the CDs matures or expired their interest bearding duration, simply move the money you have gathered into similar extremely high interest bearing CD and you want to invest the original amount as well as the interest you have earned.
 The goal is to grow the CD to a rather good size allowing you to divide the CD into 2 single portfolios and reinvesting the funds again. This will all you grow your funds rapidly due to the 8th wonder of the world, i.e. the power of compounding interest. The key is to grow your funds without exposing yourself to any more risk than you have to. Once you have grew your CDs you will have the ability to divert the CDs into the stock market when the time is right.

2. Consider moving a percentage of your 401K into an Roth IRA " the point is not to take all your money out of the 401K but rather just a portion of your employer sponsored 401K plan especially if your employer has a matching contribution to your 401K. Your employers contribution is free money for you to grow your 401K, so you do not want to
lose that income stream.

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. Clear your debts before retirement. There is nothing worse than retiring and having to work at your local taco stand because you still have debt to pay off and can't enjoy your golden years. 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 fun 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. 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. 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 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.

Toni Shrader

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Yahoo: yhopps (Please add me to your contact list and we can chat or call each other when online).

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