Nest Egg: Five Things to Prepare You For Retirement
Tuesday, May 27, 2014, 1:00 PM | Leave Comment
There is never a better time than now to prepare for your retirement. Good planning will help you define what you want out of retirement and what it will take to help you reach your goals. What are some steps that you can take to ensure that you have a comfortable and enjoyable retirement? Take a look and see if you’re ready to take the plunge into retired life.
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Have a Plan to Reduce Your Debt Over Time
As you get older, you will want to increase savings and reduce debt. This means you need to have a plan to pay off your mortgage and keep credit card and other debt to a reasonable level. When you are not burdened by debt in retirement, you can live out whatever lifestyle you want.
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Save as Much as Possible
It is always a good idea to contribute the maximum amount each year to your IRA or 401k. In 2014, you can contribute up to $17,500 to a 401k or $5,500 to an IRA. Those amounts increase if you are over age 50. When you save in advance the future won’t seem as terrifying.
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Buy Insurance
The number one cause of bankruptcy in America is related to medical bills. Buying insurance can help protect yourself financially if you have to go to the hospital or you need medication for a chronic condition as you age.
If you buy life insurance or any other insurance policy, it may be worthwhile to put those plan documents in a fireproof safe to ensure that they are never lost or destroyed. When you do get coverage, make sure it covers the types of medical bills you might receive.
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Diversify Your Portfolio
Having a variety of investments can protect you in the event that one sector of the market is not doing well. If the stock market is not doing well, you may be able to offset those losses with gains from your rental properties or by an increase in the value of gold.
Give yourself options when it comes to your finances. You might even consider keeping more valuables in a safe to keep them in good condition for your heirs. Wall safes can be disguised to keep out thieves and only uncovered at a time they are sure to be used. Call a SafeWorld a division of Dial locksmith to help you install one for your physical valuables.
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Determine What Your Retirement Looks Like to You
What is retirement to you? Do you want to take lots of trips, start a business, or help your grandchildren pay for college? Knowing what you want to do in retirement helps you make smart decisions that will enable you to grow your money in an effective manner.
Now is the time to start thinking about what you will do financially as you age. By making smart choices to protect your financial and physical health before you retire, you increase the odds that you will also enjoy financial and physical health for many years after you retire.
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