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Start Your Own Financial Plan

By
Services for Real Estate Pros

With so many ways to spend your income, it can be difficult to set priorities. Here are a few tips to help get you started with your financial plan.   

Pay off high-cost consumer debt first. Paying off an 18 percent credit card is like getting a tax-free 18 percent rate of interest on your money. Pay off the card with the highest rate first.

After that, save enough cash to live on for three to six months in case of emergency or job loss. And save at least something for retirement.

With a cash cushion in place, invest in your retirement 401(k). Invest at least as much as the company will match.

Put retirement savings before saving for your kids' college expenses. You can borrow for college costs, but you can't borrow for retirement.

Don't prepay your mortgage unless you are saving 15 percent of your income for retirement.

Insurance: Make sure homeowner and auto insurance are up-to-date. A full-time worker should have life insurance equal to six to 10 times their income. Consider long-term care insurance which will help pay for time spent in nursing or assisted living care.

Make a will to ensure that your wishes are carried out. Have a durable power of attorney and a health-care power of attorney.

If you would like to learn more regarding preparing for your retirement or a free review of your insurance policies please call me at 630-232-9811 or drop me a note at deanakey@allstate.com

Comments(4)

Michael Wayne Jackson
Coldwell Banker - Novato, CA
Broker - Seniors Real Estate Specialist Novato

Great tips for planning for the future. What is your take on putting money away in an IRA?

Jan 23, 2009 03:00 AM
Dean Akey
Saint Charles, IL

Hi Mike, it's a great time to put money into IRA's..  Typically folks who start systematic investments into their retirement after a period like we have seen will see significant growth in the intermediate to long term time frame.  In other words, the time to invest in the market is before it is fixed.....  

The key is to choose your investments wisely based upon your goals and investment strategy. 

Jan 23, 2009 03:03 AM
Eleanor Thorne
Equity Resources - Cary, NC
Advantage Lending 919-649-5058

That's quite the change in your picture!

Jan 23, 2009 04:47 AM
Dean Akey
Saint Charles, IL

Thanks Eleanor.  I think my other pic was scarring away business.

Jan 26, 2009 03:54 AM