Contact Matt Benore Contact Matt Benore by filling out the form below
Please leave this field empty.
Contact Larry Gilmore Contact Larry Gilmore by filling out the form below
Contact Paul Roth Contact Paul Roth by filling out the form below
Contact Terry A. McCarthy, CLU, ChFC Contact Terry A. McCarthy, CLU, ChFC by filling out the form below
Contact Stan Cox II Contact Stan Cox II by filling out the form below
Contact Coby Higgins Contact Coby Higgins by filling out the form below
Contact Jeff Davis Contact Jeff Davis by filling out the form below
You must be logged in to add your answer.
Now share it across your social networks to increase it's visibility!
That said, check to see if your employer has a 401 (k) plan which you can start contributing to, especially up to what the employer is matching. If this is not available then next I would recommend setting up a Roth IRA.
Now, the next big question is who to go to in order to set these up? If you are using the 401 (k), then work through your employer. If you are setting something up outside of the 401 (k), then you might look to working with a registered representative who can give you accurate information on an investment which suites your needs the best.
Let me know if you have any other questions.
There are many options to consider, as there is no one right answer. You may wish to speak with a "fee only" financial advisor who can help you with your planning and review your options. Life insurance agents and investment advisors may have their own agendas. Each should be able to answer specific questions you have regarding their products and applicability in retirement planning. Each has appropriate products.
Diversity is always a good idea. Remember that disability insurance, which will protect your income during your saving years, is vitally important.
The advantage of starting early is that you can do several things over time with different risk and reward profiles. You have time to pick and use safe, moderate and high risk investments because time works in your favor. Waiting until your older actually forces you into more risk situations as you try and make up for time by choosing higher risk investments because you need a high return. Getting started young, building your safety net allows you to take some risk because you have a fall back position, not a desperation position.
So cover your ass-etts first, buy yourself some decent insurance. if a calamity befalls you, you will not be financially out of the game. Somebody will suffer the calamity. It may be you.
1. For free life insurance advice, go to www.lfehappens.org and figure out how much you need now. Then buy it. Today. You are not bulletproof. You likely have a friend your age that has died. No second chance.
2. Car insurance. Since the average SUV you might hit costs lots more than the minimum coverages, don't get minimum liability coverage.
If you hit someone, and have less coverage than what you hit, you may end up paying for the rest of the SUV you hit out of pocket. While I am on it, buy a car you can afford to lose. Pay cash if you can. Cars are just the cost of getting to work. By paying cash, you can save 4,000 a year or more. A nice little pile.
Remember: We fly around all day in 30 year old airliners. Airlines maintain their planes meticulously. Maintain your vehicle and it will last. Fall in love with your spouse and your children, not your car.
3. Furniture, clothes, and other things do not go up in value. Pay cash for items that do not go up in value. If you can't pay cash, you can't afford it. Goodwill is open in every city. They always have some nice things.
4. You do not need cable or Satellite. Netflix is 1/10th the cost. Save 1000.00 a year.
5. Pack a lunch. You can go on a nice vacation with the 2,500.00 or so you will save over the year by not buying a 10.00 lunch.
6. Do you really need the latest cell phone and unlimited data plan? No, I didn't think so.
7.Little piles make big piles. Only when you have saved something can you plan for retirement. The easiest way to make a good retirement possible is to cover your losses, and spend less.
Once you have saved your backside risk and saved some capital, how you allocate your funds is less important than the discipline to do it. What gets watched grows in your life. Keep track of your money, using www.mint.com or some other software, and it will grow.
when you have big piles, you will by then have the knowledge of how to keep the money working. Let me say it again. Little piles make big piles. Be disciplined. Do so, and you will be comfortable in retirement. I have faith in you.
There are many steps you can take to put a retirement savings plan together. As mentioned above, 401k and IRA are great vehicles for building retirement savings accounts. Of course, learning healthy savings habits is going to benefit you in the long run. Doing so will make you eligible to obtain an annuity as an additional retirement planning tool that will provide you with a series of payments you cannot outlive.
Another strong piece of advice for planning your future security- get a life insurance policy. Yes, now. It's great if you have life insurance as a benefit through your employer HOWEVER, it is so important to have at least some whole life coverage that you own, in your name. Be sure to read the fine print of your work's life insurance. Also, be aware that your employer can change or take away that coverage at anytime. Qualifying for life insurance at a young age means you will be locked into the lowest rate available to you. The older you get, the more at risk you become and the more you will be paying. There are many different types of policies so be sure to speak to your agent to find what is best for your needs.
Second, you need a stash of emergency cash. I make it rhyme so it's easy to remember. $1,000-$2,000 is a good start. Get a safe & start sticking it in there. Crap happens - someone in India wipes out your account and it takes a week or two to get the bank to give you back your money.
Third, open a savings account and save at least three months of your household expenses but six months is better. Again, crap happens and if you have to change jobs, you may need a 3-6 month cushion to find another job.
Fourth, max out your company's 401k to the extent of the company matching. That means for every dollar you put in, you DOUBLE your money guaranteed.
Fifth, this is where you get into long term financial planning. Do some networking, attend some seminars, ask friends. I personally like mutual funds & annuities but everyone will give you different answers. Find a plan that meets your risk tolerance and a company you trust. You will hear a lot of noise about fees but keep it in perspective - are you getting what you pay for? It's not like gasoline where you get the same gas no matter where you fill up so always look for the cheapest. Different products offer different services for different fees.
If you are 30 or under you have 35 plus years to save for retirement. You can use compound interest and time to build a sizable nest egg for retirement.
Begin with developing the mindset of spending a portion of your income and never exceed that portion. If you decide to save 10% for retirement then put the money up. It pays to have it in a savings account that you don't use until you can see where to put it. Options include;
1) Open an IRA account - deposit the maximum the IRS will allow you to deposit per year
2) If you work on a job with 401K enroll. The longer you stay there the more you will accumulate
3) Invest in an Insurance policy while you are still insurable and the cost is cheaper than when you are older. Choose a policy with cash accumulation.
4) Develop the mentality that this money does not exist. Resist the urge to spend it. Have savings and other resources that you can draw upon instead of your retirement.
With discipline and commitment you can build a great nest egg for retirement.