Here are answers to some common questions that young people have about retirement savings, since you’re never too young to start saving for retirement!
It’s not easy to calculate how much money you’ll need. There are so many different rules and schools of thought when it comes to retirement funds, social security, and savings. Here are some common rules about retirement saving that might not apply to you.
When will you be able to retire? That all depends on three factors: how well you’ve been saving, the lifestyle you want upon retiring, and the age you want to stop working. The experts over at CNNMoney recently tried to provide some answers to this big, important question.
Think you’re too young to start planning for retirement? Think again! Check out the many reasons why (and how) you should start saving now!
Current market conditions are once again leaning in favor of adjustable rate mortgages and it’s important to understand their function. Here’s information about ARMs, how to interpret the “lingo” and how to decide if it’s right for you.
Making personal finance a priority for 2011? Set yourself up for success with these tips and suggested goals!
Q: My wife and I are retiring in three years. We plan to move west to be closer to our kids and grandchildren after we retire. We owe $220,000 on our mortgage and we’re paying a 6.75% mortgage rate. We missed the chance to refinance when rate were low a few months ago and, even at a lower rate, we aren’t sure if paying a lot of closing costs on a loan we’ll only be on for three years makes sense. Should we just sit tight or are there other options? A: You can take advantage of a 1st Lien Home Equity Loan. The rate is fantastic and the closing costs are very low. Let’s do some math. Rate – 3.75% Closing Costs – $400 Current rate (6.75%) – New rate (3.75%) = $1,427 payment vs. $687 payment = $740 monthly payment savings. $740 × 36 months is $26,640. Because the Home Equity loan is interest only, you won?t be paying down principal, so you?d need to add back the $7,500 you would have paid your current loan down. You can save a net $19,100. The loan is tied to the Prime Rate. It will adjust. However, all forecasts point to the Prime Rate remaining low for the foreseeable future. Even if Prime ticks up a full percentage point, or even two, over the three year period, you will still have a lower interest rate than you have now!
With politicians tossing around the idea of raising the retirement age to reflect an increase in life expectancy, workers of every age are likely wondering “Will I ever be able to retire?” The answer is “yes,” if you are smart about your money starting at whatever age you are today.