We go through life, working, saving and being careful with our money. Why do some end up with more than others? It is not necessarily how much you save, but where and how you save it! Remember the tortoise and the hare.
Recently, Ed Slott, a noted CPA, was on Rocky Mountain PBS and made these comments. Do you want the retirement of your dreams or the retirement of your night mares?
Here are the 5 Silent Retirement Killers
1) Taxes-the biggest killer of them all. We know that with the current economy and impending Fiscal Cliff, taxes will go up. Growing your money tax deferred and taking it out tax free is the ultimate goal. How to accomplish this? Roth IRA or cash value life insurance! Cash value life insurance has all the good parts of a Roth, but none of the government controls.
2) Risk-losses can hurt you more than you know. Remember the tortoise and the hare. Steady gains add up more quickly than gain and lose. Minimize your risk. Fixed index annuities (not variables) allow upside of the market with no downside risk.
3) Saving Money in the Wrong Place-Right now saving money in the bank results in a very low interest rate. Did you know that interest is taxed? You may not be losing money but you are losing buying power because the interest rate is lower than the rate of inflation. What are the real fees? Saving your money in the market? What if we have another “correction?” Are you prepared to lose 50% again?
4) Uncertainty-guarantees failure. Jumping from one saving way to another does not give your money a chance to grow and may have penalties. Longevity pays off. You must be aware of the changes in the economy and then make a choice.
5) Inactivity-Doing nothing gets you nothing!!! Talk with a trusted advisor, take classes, check out different opinions, know your goals and your options!
Don’t know where to start? We have a classes, at FUEL Financial. They are to get your Financial House in Order. Our classes teach you how to get the most out of your money and make it work for you!
Contact Pat at www.SmarterWomenColorado.com