Remember to discuss your plans with a financial planner before taking any of these suggestions. They will be able to help you chart a personalized investment course to see you through retirement.
No doubt, you've heard that we are facing an economic downturn and are worried about the future. Like most people, you are probably concerned about your job future and have pushing long-term goals down on your list of priorities. Don't - the best way to survive lean times is to have savings set-up that help you to manage your finances.
It is becoming more evident that citizens can not count on governments to subsidize retirement. At least not in a way that will allow you to live a lifestyle you would want. Who, after working for 45 - 50 years, wants to go back to living week to week? I don't, and you shouldn't have to.
Contrary to popular believe you do not need to start out with large sums of disposable cash to begin investing. In fact, starting earlier and investing less will reap far greater rewards than investing larger sums later in life.
You can read the whole article to see all of the options available to you, or you can skip to the section that deals directly with your stage of life.
You are 20something: Your whole life ahead of you, who wants to think about retirement. If you want retirement saving to be as pain free as possible; you do! The decisions you make as you enter the world on your own will set the pace for the rest of your life. Work on becoming debt-free, pay down student loans, choose a cheaper car and do not party away all of your money. For people in this bracket experts agree that the best course of action is to use IRAs and 401k plans set with automatic contributions. If funds are taken directly off your check, you won't even know that you're missing anything.
You are 30something: You are beginning to reap the rewards of your hard work with higher wages. Add to your 401k and IRA accounts gradually, slowly increasing contributions. Experts say that you should be investing about 10% of earnings by this point in life. Take the remainder of that 10% and invest in stocks. Stocks come with inherent risks, but prudence can help minimize risks.
40s: You still have time to build that nest egg, so don't worry. Max out your IRA and 401k contributions. Look through your portfolio and make sure you do not have too much money invested in any one place. The idea now is to begin decreasing your risk, while earning as much as possible. Consider selling some of your stock holdings and invest in bonds.
If you are 50 - 60: You're finally close enough to see the end-zone, but now you're worried you haven't done enough. You will have to be honest with yourself. Decide what your goals for retirement are and find out how much money you will need to meet those goals. Once you are armed with this, collect all your records: assets, expenses, debt, goals and contact a financial expert. You are going to need assistance to, and they can help you. Utilize any government grants or other opportunities that might be available to you. Depending on where you live, you may be entitled to contribute a higher percentage of your salary than previously. If your situation isn't as rosy as you'd like you may need to look into delaying retirement or taking a part-time job after leaving your current position. - 2364
No doubt, you've heard that we are facing an economic downturn and are worried about the future. Like most people, you are probably concerned about your job future and have pushing long-term goals down on your list of priorities. Don't - the best way to survive lean times is to have savings set-up that help you to manage your finances.
It is becoming more evident that citizens can not count on governments to subsidize retirement. At least not in a way that will allow you to live a lifestyle you would want. Who, after working for 45 - 50 years, wants to go back to living week to week? I don't, and you shouldn't have to.
Contrary to popular believe you do not need to start out with large sums of disposable cash to begin investing. In fact, starting earlier and investing less will reap far greater rewards than investing larger sums later in life.
You can read the whole article to see all of the options available to you, or you can skip to the section that deals directly with your stage of life.
You are 20something: Your whole life ahead of you, who wants to think about retirement. If you want retirement saving to be as pain free as possible; you do! The decisions you make as you enter the world on your own will set the pace for the rest of your life. Work on becoming debt-free, pay down student loans, choose a cheaper car and do not party away all of your money. For people in this bracket experts agree that the best course of action is to use IRAs and 401k plans set with automatic contributions. If funds are taken directly off your check, you won't even know that you're missing anything.
You are 30something: You are beginning to reap the rewards of your hard work with higher wages. Add to your 401k and IRA accounts gradually, slowly increasing contributions. Experts say that you should be investing about 10% of earnings by this point in life. Take the remainder of that 10% and invest in stocks. Stocks come with inherent risks, but prudence can help minimize risks.
40s: You still have time to build that nest egg, so don't worry. Max out your IRA and 401k contributions. Look through your portfolio and make sure you do not have too much money invested in any one place. The idea now is to begin decreasing your risk, while earning as much as possible. Consider selling some of your stock holdings and invest in bonds.
If you are 50 - 60: You're finally close enough to see the end-zone, but now you're worried you haven't done enough. You will have to be honest with yourself. Decide what your goals for retirement are and find out how much money you will need to meet those goals. Once you are armed with this, collect all your records: assets, expenses, debt, goals and contact a financial expert. You are going to need assistance to, and they can help you. Utilize any government grants or other opportunities that might be available to you. Depending on where you live, you may be entitled to contribute a higher percentage of your salary than previously. If your situation isn't as rosy as you'd like you may need to look into delaying retirement or taking a part-time job after leaving your current position. - 2364
About the Author:
One basic theme with personal finances is keeping your money safe, a fixed annuity can be a good alternative to CD investing in this regard, and an index annuity can be used to get growth without the risk that usually comes with it.
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