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[F794]Free Retirement Party Invitations

by Craig Thornburrow, Cra

If you work for a firm that offers a 401K plan, it is advantageous for you to increase the percentage of payments as well. When the economy begins to pick up, you can then decide whether or not to transfer the 401K to individual retirement account later on.

For now, at least, contributing to an IRA can make all the difference upon retirement. While you can research traditional IRA plans as opposed to the Roth individual retirement account, the general consensus is that a Roth IRA would be most beneficial in the long run. You will find that traditional IRAs are taxable while the Roth IRA is not.

There are many companies online wherein you can determine which IRA best suits your needs. For example, with a Roth IRA plan that is maintained over a five-year period, you can withdraw the money at age 59Â½ without penalty. In addition, if you are under 50 years of age, you can contribute a maximum of $5000 and effective this year, if you are over 50 you can contribute an additional $1000.

Moreover, there is also a provision for those 50 years and older who can contribute more than the maximum amount in order to catch up to the amount you should have had if you had contributed earlier.

Given that the current economic recession is the number one concern for consumers in the US and abroad; and given that the price of food, gas, and other commodities has risen to all-time highs, more and more consumers are worried whether or not they can afford to retire. This is especially significant for baby boomers that are on the cusp of retirement or near it.

Experts are now suggesting that those who have just begun a career in the workforce open an IRA account and begin contributing now so that by the time they retire, they will at least have accumulated that which will afford them a comfortable retirement.

An individual retirement account is not only important for your future, but can increase the chances of retirement at the age you desire. We live in uncertain times; with the high cost of health-care, food, gas, and other necessities; the one question most asked is, "Can I afford to retire?" The only way to answer that question is to open an IRA account now so that your future will be less uncertain than it is now.

Have you had the daydream where you give that final notice and within weeks are on a plane to somewhere tropical to start your vacation for the rest of your life?

Also known as the "golden years," retirement might not seem so golden if you find yourself with a mortgage to pay off, medical insurance, auto loans, country club expenses and the cost of living.

Typically, retirement means that you will need less money since your professionally expenses (lunch, clothing, parking, gas, etc.) are now eliminated. However you need to consider that there are other expenses that just might take their place.

It has been estimated that the average American is going to require around 70% of their income earned (in the peak years) for their retirement fund. So let's say you were making $50,000 a year, now you are going to need about $35,000 in retirement to survive. This may seem like a lot, but take a few things into consideration.

Your medical expenses are going to be higher now because you are older. Now that you are not working, your insurance from your employer is gone. So lets look at a family (of two for example) might have a co-pay of $10 to $20, well their monthly medical expenses could be up to $1000.

Think about all the free time that comes with retirement. You know that has made its way into your dreams, heading out for a 10am tee time or brunch with the girls. The leisure expenses can add up as well.
While working, your monthly expenses probably include a mortgage, insurance, automobile payment and insurance, utilities, food and credit cards.

Some of these expenses will carry over into your retirement. Think insurance, utilities and food, things that you pretty much need to live. Now there are expenses that you can pay off and live without, like the credit cards, mortgage and auto loans. This should be your main priority to focus on before retirement so you can start off debt free.

Credit cards are probably your worst enemy. Start there and get it out of your life. You absolutely do not want to enter retirement with credit card debt and if you do, work now to minimize that debt. Managing your debt has become a huge problem for Americans. Approximately 30 million Americans are struggling with bad credit and that is usually due from credit cards.

Take the time now to analyze your debts. Come up with a plan to get out of debt and pay off all of your credit cards. You will be happy you did.

If you still have an automobile loan or loans, try to get it paid off before retirement. Next to credit card debt, you really don't want to have a car payment at this point in life. Of course you need a car (think of all that free time that comes with retirement) just make sure to come up with another plan to pay off that car in full as well.

Now for the biggest expense in your life, the mortgage. Of course you need a place to live. That is unavoidable. If you start now, and make extra mortgage payments every year then you will be working to get rid of it. Let's say you are paying $1000 a month, at the end of the year send them an extra $1000. Or you could break that up into smaller payments each month.

If you have a 30 year loan this method can reduce your mortgage term down to 23 years. Once you have paid the mortgage off that will eliminate your biggest expense, and in the future if you absolutely have to, you can take out a reverse mortgage.

Just remember that a lot of parents will start saving for their kids education before getting out of debt. Keep in mind that your children actually have a stronger earning potential than you do! Your ability to work in this fast-paced, quickly changing world with a high paying job is not as likely as your children.

Also, a good credit rating at this point is really important because you want to be able to use that towards any credit application in the event of emergencies. Getting rid of your debts before retirement will guarantee that you are in good standing.

Debt relief is available for those who need it. If you want to settle your debts before entering into retirement, there are companies who can help. They can negotiate on your behalf and before you know it, you will be on your way to financial freedom. After that, you will be living in retirement, not only stress-free, but debt-free as well.

Article Source : work stress relief

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Both Craig Thornburrow & Christina Costa are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Craig Thornburrow has sinced written about articles on various topics from Debts Loans, Debt Consolidation and Affiliate Programs. Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on and. Craig Thornburrow's top article generates over 135000 views. to your Favourites.

Christina Costa has sinced written about articles on various topics from Home loans, Cars and Debt Reduction Consolidation. Christina Costa, a freelance writer, recommends eQuoteGrabber.com for where you can receive help with all of your personal. Christina Costa's top article generates over 18100 views. to your Favourites.