How to Improve Your Financial and Retirement Situation

How to Improve Your Financial and Retirement Situation 

Financial and Retirement Planning Information - 
for Beginners

The method of improving your financial and retirement situation depends somewhat on your age and your current status, but whatever your age, financial and retirement planning is a must.  You can't just hope that things will improve on their own.

If you are young and have time to build up a nest egg, you can afford to be a little less aggressive when it comes to stashing the cash, as you have a longer time to invest. On the other hand, if you are older, you need to be less aggressive in terms of investments, as you want something safer so your money won't be at risk when you are close to retirement.

Regardless of age, anyone who is earning a dime should have an IRA account. You should have this even if you have other types of retirement, but you should have it especially if you do not have any other kind of retirement.

Unless you are a multi-millionaire, you can not have too much in a retirement account. You don't know how long you are going to live, or how much things will cost in the future, or if you will not be healthy and need more than you anticipated for medical expenses and/or a nursing home.

The only exception I can think of to this rule is if you are in your 60's and don't have any retirement and very little money and a small income. Why would I say that is an exception? If you are on the borderline of having “some” money and have almost no money, it can keep you from being eligible for different kinds of assistance, but you can't afford to pay for everything you need. If you are in that situation, you will eventually spend all you have saved, and thus will become eligible. While you are waiting for that to happen you will be living frugally, having barely enough to pay all of your bills and buy food and medicine. Your life will be miserable, as you will live in fear of what the next day will bring. One day you will wake up and that fear will become a reality. Something will happen to push you over the edge, your refrigerator will go bad, or you will fall and break a bone, or the price of medicine will increase to the point that you can no longer afford it. Debt solutions should not consist of waiting until your are bankrupt so you can get out of debt. Debt management, especially younger in life, is better than trying to figure out how to get out of debt.

If you are in need of debt repair, then you probably also have need IRS debt relief. Believe it or not, the IRS has debt settlement programs and is sometimes more likely to negotiate than some creditors, so don't be afraid to try to work out some IRS debt relief.

When you reach the point of being totally broke - or close to it - you may become eligible for Medicaid, extra help on your Part D Medicare, and maybe some state assistance. Many hospitals have financial aid for low income, and will help pay or totally pay all of your hospital bills. Doctor bills usually are not included.

Medical bills ruin the credit of thousands of people every year. It used to be in the state where I live that as long a you made a monthly payment on your medical bill, even if it was only $1.00 a month, you could not be sued, and your debt could not be turned in to a collection agency. That all changed about 20 years ago, and now doctors and hospitals are very quick to bill you, and almost quicker to turn your debt over to a collection agency. They now dictate what you will pay, and there is little, if any, negotiation. They tell you they want $100.00 a month payment and you tell them you can only pay $75.00. They will tell you if you don't pay the $100.00, then they will just turn it over to be collected. They don't want to be bothered with the time and expense of collecting.

Once the collection agency gets their hands on your debt, you are at their mercy. Consumer credit counseling may help some, but your credit report has already been damaged. Credit repair is possible, but it a long and hard road, especially if you owe a large amount.

If you are younger, you need to be aware of what could happen to you when you get older, and watch out for yourself. Many people say they have to put their children through college, or help raise their grandchildren, but they are just hurting themselves. You are not obligated to put your children through college. Unless they are actually starving, you don't have to help your grandchildren. Do they really need a cell phone and an ipod at age 8? It is nice if you can afford to do that, but don't do it a your own expense.

If you are older and need cash, and you own your own home, consider a reverse mortgage. Once again, don't try to hang on to the house so you can pass it on to your children. Look out for yourself first! No one else is going to take care of your financial and retirement situation but you.