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| Can You Take An Early Retirement On Time Debt Free? |
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| Written by Neil101 Venketramen101 |
| Saturday, 28 February 2009 09:40 |
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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. 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. 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. 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. Pay off your mortgage ahead of time while you are younger. Make an effort to pay your mortgage using a mortgage accelerator program and you could pay your mortgage off within 15 years instead of 30 years and save yourself the interest. The best part is that you can do this without spending more or changing your lifestyle. 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 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 find how fast you can eliminate your mortgage debt and retire early, please go directly to the Mortgage Accelerator enter your info to gain access to the free mortgage pay off calculator. In 4 seconds it will reveal your savings designed for your lifestyle. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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