Debt consolidation is a loan that you would take out to consolidate several smaller loans into one loan. Basically, paying off the balances of all the other loans. The goal of a consolidation loan is to reduce monthly instalments usually by means of lower interest rates and extended payment terms.
28 November 2012
If you are over 50 years old and wonder if your retirement savings plan is aggressive enough, you’re not alone. Statistics show that most retirees face some sort of retirement savings crisis just a few years after giving up work. It is quite easy to underestimate your cost of living, max out your savings when a medical emergency occurs, or experience some other financial trauma that can significantly reduce your nest egg. If you have reached the age of 50 and feel insecure about your savings for retirement, here are some simple steps you can take to get back on track. Even if you haven’t really started saving, these tips will help you get started with building the nest egg for your golden years.
Step One: Delay Your Retirement and Savings Will Accrue
Need to know how to save for retirement? Begin with looking at when you plan to depart your 9-to-5 job. Can you delay it a few years? The longer you spend in the workforce, the more income you’ll have flowing in. If you are able to delay retirement by five or ten years, or even just two, you can use your income towards savings and try to rack up better retirement benefits.
Step Two: Slash Your Expenses
Now is the time to begin slashing your expenses as well. If you still have a bond, and it’s a significant part of your retirement living expenses, consider selling your home and moving into a smaller place or at least into a home with a significantly smaller bond. Begin distinguishing between the necessities (like health care) and the luxuries (such as cable television). Cut your retirement needs to a comfortable minimum and you won’t require as much money to finance your retirement in the first place.
Step Three: Save Like Crazy
Put as much of your income into saving as you can comfortably afford. Max out your pension contributions, particularly if your employer offers a match. Remember you are also getting tax back on these contributions, so it is very tax effective. Establish a separate account if you haven’t already, and contribute as much as you can. Make sure you have liquid savings, too, in a money market account or simple savings account and check every 3 months if you are getting the best rate. The more money you save now, the more interest you will be able to accrue. The interest, especially compound interest, can really push your retirement nest egg from the scanty to the comfortable.