Carrying Too Much Debt Can Prevent You From Retiring
Online, October 28, 2010 (Newswire.com) - Two recent surveys, one by online brokerage firm Scottrade and the other by MetLife, both suggest that many people are waiting far too long to make retirement-related financial decisions. Over half of respondents reported that they were behind on their savings goals and one in four people were significantly behind. Sixty-three percent said that debt is preventing them from saving for retirement and four of ten survey respondents said they were concerned that they have too much debt. Together, these two surveys suggest that most of us have a long way to go before we are financially prepared for retirement.
Sometimes debt consolidation loans and personal loans can be part of the financial equation for organizing one's financial house. Find out if a personal loan is part of your financial solution. Click here to learn more.
How can you figure out if you are ready for retirement - and if not, what steps can you take to improve your financial position? With the internet, it can be simple - just pick an online retirement calculator. Some good ones include TD Ameritrade's WealthRuler, NewRetirement.com's retirement calculator and T. Rowe Price's retirement income calculator.
Some additional suggestions:
• If at all possible, change your budget so that you save more. Even a modest increase in your savings can yield big dividends later on.
• Diversify your investments through index or mutual funds, and decrease your exposure to stocks by shifting into safer vehicles such as bonds and cash as you approach retirement.
• Make sure that your budget helps you meet your short and long term goals.
• If your employer offers a retirement plan, be sure that you contribute to it - as much as you can afford - especially if your employer offers a matching contribution.
• Ask your banker if you can set up your checking account so that a certain amount is automatically deposited into savings each month.
• Review your personal loan / small business loans and credit card balances. Pay down high-interest debt and shift debt into lower interest personal loans where feasible.
