Like many people, the recession hit me pretty hard. Thanks to a job loss, I got behind on some of my credit cards. Even though I did mange to make the mortgage payment every month, my credit rating nose-dived. While things did get better, I still wondered if it would be possible to refinance my mortgage with bad credit. After talking with a few lenders, I found out that my situation was not unique. I also found lenders who were willing to work with me. I managed to get terms that will save me money over the life of that mortgage. If your credit has taken a beating, don't assume that refinancing is out of the question. I'll share how I researched options and found a lender who offered a good deal. You could find that refinancing your mortgage is within your reach.
Planning for your retirement can feel like a daunting task, especially if your retirement is 30 or 40 years away. One way that you can make properly preparing for your retirement feel like an achievable goal is to streamline your retirement savings. Check out a few things you can do to simplify your retirement savings strategy.
Roll Over Your Old 401(k)s into a Single Account
Most individuals do not stay at the same job for the duration of their careers. When you leave a job, you usually have the option to either leave your 401(k) account with its current brokerage firm or roll it over into another retirement account. If you opted to leave your old 401(k) accounts where they were, now is the time to roll them over into a single account.
You can roll your old 401(k) into a traditional or ROTH individual retirement account (IRA). Know that if you opt to roll your 401(k) into a ROTH IRA, you will have to pay income taxes on the amount that you roll over. However, your money then grows tax-free until retirement; when it is time to start taking distributions, these are also tax-free.
If you prefer to keep your 401(k) tax-deferred, simply roll it over into a traditional IRA. You won't have to pay taxes until you start taking distributions in retirement.
Rolling all of your old 401(k) accounts into a single investment account makes it easier to monitor what funds you are invested in and the performance of these funds.
Take Advantage of Auto Increase Features on Your Retirement Accounts
It is common for many retirement accounts to have an auto-increase feature. Instead of having to remember to manually go in and up your retirement savings each year, you can have your account automatically increase your contribution. This option is commonly available for 401(k) accounts, but many IRAs also permit you to increase your contribution over time.
You can specify how much you want your contribution to increase, when you want it to increase, and at what point you want the auto-increase to stop.
Elect to Have Your Contributions Automatically Deducted from Your Bank Account
If you contribute to a 401(k) account, one of the benefits is that the contributions automatically come out of your paycheck. You don't have to worry about making them or inadvertently spending the money that you need to contribute. Enjoy the same convenience with your IRA by having your contribution automatically deducted each month from your bank account. This is one less financial chore you will have to remember to complete.
Also consider speaking to your financial services institution for additional advice on how to best prepare for your retirement.
Share18 March 2018
