Is Financial Freedom A Good Enough Reason?

Do you lay away at night wondering why you continue to invest money into your retirement plan when the markets are in a continual slump? Are you thinking about stopping your plan contributions because of this? Rollover and go back to sleep because the benefits of retirement investing far outweigh the hardships.

What’s In It For You?

  • You Get Control

Money cannot buy retirement happiness. That’s a true statement. Money sure can buy financial freedom though. When you retire with enough money nothing can stop you from doing whatever you darn well want to do. A retirement without enough money can be a long, empty retirement.

You need money to have control. No money equals no control.

  • Stress Free Living

Stress free living starts with having enough money to afford retirement. You will never avoid tax increases. You can’t stop the increases in the cost of health care or basic living expenses. If you have enough money though inflation will be less of a concern for you.

Reaching retirement age with financial freedom is your greatest achievement.

Sounds Great|How Do I Get There?

  • Start Early

The day you start your first job is the day you sign up for your employer’s retirement plan. If you start your career without needing that investment money you will painlessly learn to live on less. The point is for you to develop the financial habit of investing.

You can start slow. Invest a little amount at first. As you get raises and bonuses you can increase your contributions.

  • Who doesn't want financial freedom?

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    Time Is Money

The longer your  money is invested the better. Your money compounded over your career life will generate a very large retirement account. In your financial life compound interest can be your best friend. Compound interest means that your interest earns interest. In other words, your investment money earns money. You can’t beat that.

  • Cut Back

Learn to live on less. Of course you have basic living expenses, find cheaper ways to pay for those expenses. There are numerous ways to cut back on expenses. The most common include eating out less, buying on a needs vs wants basis and avoiding credit card debt (the interest payments are a waste of money).

Manage Your Investments Like A Pro

For professional money managers it’s all about asset allocation and diversification.

Allocate your retirement investments properly between stocks, bonds and cash. Avoid the mistake of investing all of your money into one type of investment. Stocks and bonds generally react to market conditions in the opposite way. When stock returns are on a decline bond returns are generally on an incline.

Diversify your investment mix to include some type of cash equivalent plus large cap, mid cap, small cap, balanced and international or worldwide.

Don’t Forget Retirement Ben

Benjamin Franklin said that there is no escaping death and taxes. He forgot about retirement. Regardless of whether or not you have enough money to retire, you will eventually hit retirement age. If you want to be financially fit during your retirement years be sure to manage your investments like a pro, never stop investing and eliminate wasteful spending during your working years.