Debt Consolidation Credit Counseling In Phoenix

The economy is unstable and the stock market has been take us down memory lane back to the days of severe recession.

Right now stocks are actually pretty risky and if you are bank rolling on the stock market you could end up losing the money you invested, not just any profits you have made.

Briefly there are 8 points you should take into account to enclose the strength of your familys finances and their hope and dreams. Oh by the way, please avoid the mistake of relying 100% on your 401K to assist you through a tough time:

1.Depending your current financial situation, you should be saving 30-35% of your income into an interest bearing accounts fro example a bank savings account or credit union CD's. Here s why, you can get a rapid return over a shorter period at a elevated interest rate, without taking any more risk. When they the period has matured, simply transfer these funds into different high interest bearing CD and simply continue to reinvest the original amount and all of the interest you earned. The secret is to grow the CD to a optimal size so that you can split them into 2 CD's, keep investing the funds and simply observe the rapid growth due to the power of compounding interest, i.e. without taking any material risks. This will allow you to move the funds into the stock market when the time is right or once you have done your home work identifying potentially good stocks.

2. Move a portion of your 401K into an Roth IRA " the point is not to take all your money but rather just a portion of your employer sponsored 401K plan especially if your employer has a matching contribution to your 401K. This is free money for you to grow your 401K.

3. Speaking of bonds...your money is far safer in a bond than stocks and you don't have to worry about a stock falling and taking your investment with it.

4. Clear your debts before retirement. There is nothing worse than retiring and having to work at your local taco stand because you still have debt to pay off and can't enjoy your golden years. There you are standing next to some kid young enough to be your grandchild and having to call him/her boss. That is not a fun retirement.

5. Have the ability to become mortgage free while at an early age. Use the latest mortgage acceleration strategies available to you and become debt free faster so that you can pay off your mortgage 15 years faster without changing your lifestyle or paying extra towards your mortgage.

6. By creating an emergency reserve in a separate financial company or bank, which is not linked to your current bank account, will allow you to avoid little withdrawals that will eat up your emergency funds.

7. When considering your insurance costs, a great idea is to have your home insured at the replacement value, not market value of the home. The same principle will apply for your car. You do not have want to have your car insured at the minimum state value when you reside in a better district or neighborhood. The idea is to have a better insurance coverage for your lifestyle and you may want to possibility of having umbrella coverage to reduce your insurance cost.

8. Getting sick or injuring, yourself could deplete your savings or 401K if you do not have proper Health insurance. Just to elaborate, imagine slipping in the bathroom or injuring your knees. Therefore, you know that you could pay in the region of $6,000 just for the surgery and well over for doctors visits. Which is ridiculous.

The goal is to begin working on one item at time so that you do not get overwhelmed. The key is to set a timeframe and ensure you are able to complete each goal to protect your retirement income and your family in retirement.