Debt reduction is a key part of financial planning because you don’t want to be making those loan payments for the rest of your life.� However, what happens when you have your debts under controls or even…(gasp) completely eliminated?� Then you have to start investing for your retirement.
Foreign exchange trading is a risky trading strategy that should only be considered after careful study.
How do you invest for retirement?� And how much should you save?� Only you can answer those questions by learning more about investing and then applying the lessons learned to your own situation.� We’ll go over some of the basics steps in this carnival so that you will know where to start when your debts are gone.
Setting financial goals
It doesn’t matter whether you are digging out from a mountain of debt or planning your exact retirement date – you need to set some financial goals.� What exactly do you want your finances to look like in the future?� Short term, medium term….long term?� Are you willing to work longer and have more money in retirement?� Or would you rather get by with less money and retire at an earlier age?
Here are the top financial goal posts (aka the “editor’s picks”):
- Peter presents Don�t Let Your Emotions Cloud Your Good Judgement. Set Goals And Delay Gratification. posted at Bible Money Matters.
- PT presents 0 Interest Rate Credit Cards Balance Transfer Dangers | Prime Time Money posted at Prime Time Money.
- Pinyo presents Get Out Of Debt For Good posted at Moolanomy Personal Finance.
- Good Financial Cents submitted a post called Debt After College Graduation.
- Patrick @ Cash Money Life presents How to do a 0% Balance Transfer posted at Cash Money Life.
- Patrick @ Military Money presents Should you pay off debt, save or invest? posted at Military Finance Network.
- FFB presents Unbroke – What You Need To Know About Money: Recap posted at Free From Broke.
- FMF presents Seven Ways to Wreck Your Credit posted at Free Money Finance.
Measure your financial health
How much debt do you have?�� How much are your current retirement savings?� Do you have any future financial obligations? (ie college education)� Will you be getting any pension income?� Social security?� How much can you save right now and in the future?�� You have to set a starting point for your financial journey – whether it’s your declining debts or increasing retirement investments – you have to know what you own.
- Jim DeSantis presents Don’t Be A Sucker! Avoid These Debt Consolidation Scams! posted at The Money Matters Blog by Jim DeSantis.
- Money Saving Advice presents Payment Premium Insurance (PPI) to be axed by the big banks posted at Money Saving Advice.
- Tushar Mathur presents When It Pays To Use Cash For Purchases posted at Everything Finance.
- Wealth Pilgrim submitted a post called Overcome Your Fear Of Asking For Help.
- Finance Tips 101 presents Credit Repair Companies: Buyer Beware posted at Finance Tips 101.
- Four Pillars talks about how to save money with a zero percent balance transfer.
Set up a plan
This step could involve some complicated spreadsheets to determine to the penny how much you want to save for the next 30 years….or just an educated guess.� The reality is that if you have a long time to retirement then there are too many variable to plan accurately so just working at your financial health by paying off debts and saving money might be the best strategy.� Setting up an investment policy statement is usually a good idea.
- Improve the Quality submitted a post called How to Keep Momentum When it isn�t Fun Anymore.
- Fabulously Broke in the City submitted a post called Revisited: Faring on a $1000 Budget.
- Investing School presents A Great Inflation Indicator posted at Investing School.
- Stock Trading Brokers presents Zecco Zirens | Educational Trading Videos posted at Stock Trading Brokers.
- DR presents Best 0% Balance Transfer Credit Card posted at The Dough Roller.
- Christian Debt Help submitted a post called When should you say no to giving?.
- The Digerati Life submitted a post called How To Pay Off Credit Card Debt: A Success Story.
Withdrawal rates in retirement
The most common formula for safe withdrawal rates in retirement is the 4% rule.� This rule isn’t written in stone but it’s a good guideline.� Don’t forget that you will probably have income sources other than your investments.� Social security might undergo some changes over the next few decades but it’s unlikely to stop paying out completely.
- Four Pillars has zero percent balance transfer credit cards.
- MoneyNing presents Turbocharge Your Savings with Certificate of Deposits (CDs) posted at Personal Finance Blog by Money Ning.
- Madison presents Get Out of Emotional Debt posted at My Dollar Plan.
- Nckel presents How to Pay Off Your Mortgage Early posted at fivecentnickel.com.
Mr Credit Card presents Struggling with business debt posted at Ask Mr Credit Card. - Green Panda Treehouse submitted a post called Financial Guru Review: David Bach.
Asset allocation
Some people like to have all their money in stocks, others all in CDs.� I would suggest that your asset allocation should be somewhere in between.� Remember that the shorter your investment time horizon – the safer your investments have to be (ie less stocks).� Don’t put all your eggs in one basket!
- Debt Freedom Fighter presents 5 Effective Tactics for Dealing With Debt posted at Discover Debt Freedom.
Savings Toolbox presents Saving Strategies to Put More Money In Your Pocket posted at SavingsToolbox.com. - Ben presents Your Fico Score posted at Money Smart Life.
- The Smarter Wallet submitted a post called How To Manage Debt: Credit Management Tips For College Students.
- Manshu presents Will I be sued for credit card default? posted at OneMint.
- Sue presents Back to Square 1 posted at Motherhood101Aplus.
- The Happy Rock presents Get Out Of Jail Free Card – Visualize Yourself Without Debt posted at The Happy Rock.
- Kathryn presents Finding Affordable Health Insurance posted at Out of Debt – Christian Finances and Debt Help.
Photo credits:� Aussiegall,� Alex_Kuruz, Army_Arch, BLMurch
