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Financial Independence - Complete Controller

Financial independence, two words that every responsible adult wants to hear, but what is financial independence? It is the financial goal you achieve when you have zero debt, savings for emergencies and retirement, and aren’t living paycheck to paycheck. It can also include some great major purchases like a house, car, or boat. To be financially independent should be everyone’s goal, with no exceptions.

Most people give up on the dream of financial independence, thinking it is difficult to achieve. Still, the truth is there are steps you take that are immediately actionable and can greatly impact your financial status. Here are three easy steps that will get you to financial freedom that you can apply today! Check out America's Best Bookkeepers

Get Control of Your Money

Often, a person cannot get out of debt or have financial independence due to the loss of control over their money. This loss of control can happen when debt is taken on that is hard to overcome. These debts include high interest or payday loans, maxed out credit cards, or other loans or credit lines that have you in a hole you can’t climb out of even with making payments.

Suppose you can’t afford a financial planner or credit fixer, which is often the case when deep in debt. You can take control without professional help. First, work at consolidating your debt if you can. Find the lowest interest loan or obtain a low-interest loan if possible to cover all your debt and use it to pay off all your cards and higher-interest loans. This action will consolidate all your debt into one payment with a lower interest rate. If you cannot obtain a loan or don’t have room on a lower interest credit card to charge off higher interest debts, start by paying off two things right away. First, any high-interest loans or credit cards, and second the smallest debt you have. Doing these two things will help you gain control of your finances quickly.

Once you gain control, it is vital that you get rid of credit cards and don’t take on any new loans. Once you get control and get out of debt, don’t allow yourself to get there again. Check out America's Best Bookkeepers

Cut Spending

Besides getting out of debt, trimming the fat in your spending is an immediately actionable way to get to financial independence. First, you have to look at your finances and truly analyze it. You don’t have to do away with every luxury you spend on. Luxuries are anything outside of necessities. Luxuries can include everything from big-ticket items like a new TV to something small like impulse buys when you go grocery shopping. Cutting spending or trimming fat can be much like a diet. If you are not keeping track of what you are eating, how much you’re eating, or the quality of the food you’re eating, you will not be successful with your diet. In a budget, you need to write down everything you spend your money on and prioritize it.

 

If you are single and have no other people on your budget, it can be fairly easy to determine spending. However, if you are working on a family budget, you will need to ensure all the family members account for their spending and participate in the decision on what to cut. This participation and buy-in is essential to help everyone participate in cutting spending. Check out America's Best Bookkeepers

Increase Your Income

In today’s gig economy, it is much easier to get a side hustle going. In the past, the only side gigs were selling make-up or housewares in a pyramid marketing venture. Today, there are hundreds of ways to earn extra income on the side with little to no upfront costs to you. You can make food, grocery, or package deliveries as a contractor, which gives you a great deal of flexibility in schedule and income. You can also do various freelance jobs on the side using your skills and talents to gain you more income.

Another way to increase your income is to obtain a second job. Often you can get jobs that are seasonal if you only need the second income for a limited time to pay down debt or build savings. Unlike the gig or freelance type job, this would be a regular job schedule and income. You can also ask for a raise or go for a promotion. These extra boosts in your income can help you work through debt more quickly or build a great savings that can be used for emergencies, large purchases or down payments, or retirement.

Conclusion

Financial independence should be a goal for every financially responsible adult. Many think it is hard to achieve, and either don’t try or give up if they do try. There are many ways to gain financial independence, but these three easy steps are quick ways you can get on the road to financial independence today!

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Pension Plans - Complete Controller

Those who are self-employed face the same future concerns as those who are employed by businesses. Self-employment offers a lot of freedom, and more and more individuals are opting to branch out and be their boss. Does this mean you can’t save for retirement or have a pension plan? Check out America's Best Bookkeepers

The answer is that you can have all the same options that employees in corporations have with some differences in the process. These differences can significantly impact your decision to have a plan and which one works best. Here are pension plans with some details on how to establish them and the advantages of each.

  1. Traditional or Roth IRA

Both types of IRAs are great for those starting in self-employment. You can also roll your 401K into an IRA if you leave traditional employment to strike out on your own. Traditional IRAs are typically pre-tax contributions and will be taxed at the time of withdrawal after 59 1/2. Roth IRAs are contributed after the income is taxed accordingly will be tax-free at the time of withdrawal after 59 1/2.

IRAs have limits to contributions that are smaller than other pension plans. Therefore the overall pension savings are lower, but the tax benefits make this option number one for consideration. Check out America's Best Bookkeepers

  1. Solo 401(k)

A solo 401(k) can only be done for a self-employed individual who has no employees. If you intend to expand your business, it is not suggested that you contribute to this pension plan. But if you intend always to be the sole employee or work with a spouse (an exception), this plan is much like a larger business 401(k) plan.

This pension plan has an advantage over an IRA in that the limits of yearly contributions are much higher. Like the traditional IRA, the solo 401(k) is saved from pre-tax income and would require taxation upon withdrawal after 59 1/2. This pension plan option may be more comfortable for the self-employed as most are familiar with 401(k)s because every company that offers benefits has a 401(k).

  1. Defined benefit plan

Though the defined benefit plan is similar to an IRA or solo 401(k) for the self-employed person with no employees, this pension plan is made for those making a high income. The contribution limits are based on the income and have no preset limits than the IRA or 401(k) contributions, which remain the same despite income.

Another advantage to the defined benefit plan is that while its pre-tax income and is taxable upon withdrawal after 59 1/2, the contributions are tax-deductible. This can be a great advantage when filing yearly tax returns making your taxable income while running the business lower and lowering your taxes. Check out America's Best Bookkeepers

Should you get a pension plan?

After careful consideration of all your options regarding pension plans, it is a good idea to have one. These are all set up to not only help you save for inevitable retirement when you get older but to ensure you make the most of your money. The best thing to do is to explore the idea through a professional broker. They would be able to give advice, look at your financials and goals, and give you an idea of what plan would be best for you.

Ultimately, after you’re educated and have gone over all the options with a professional, it is up to you to decide what is best for your retirement future. No one else can make that decision for you that is so crucial to your future.

Conclusion

Many self-employed individuals assume they don’t have pension plan options and don’t save for retirement. These options are only a few that a self-employed person can contribute to. Getting with a professional financial planner will give you the best idea of all the options you have while having self-employment freedom.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Early Retirement - Complete Controller

Self-employed business owners can claim early retirement benefits from Social Security any time between ages 62 and 65. Many factors should be considered before choosing to take early retirement because it will result in less involvement in your business. If you still have a passion for your business or want to remain heavily involved, this would not be the right choice for you. Here are some things to consider before making the decision to retire. Check out America's Best Bookkeepers

There are limits to the income and number of hours you can continue to work in your business and collect early retirement benefits. The income limits vary from year-to-year depending on when you will reach full retirement, and the hour limits are currently set between 15 to 45 hours per month. Consult Social Security to verify limits and other restrictions for the self-employed retiree.

The self-employed have an additional condition when collecting early retirement, even if they are within hourly and income limits. If they perform what is considered by Social Security to be substantial services, early retirement benefits may be reduced or eliminated. Social Security implemented this provision because small business owners were collecting early retirement while still taking on most of the work and paying a friend or family instead of themselves to remain under the limits.

Substantial services are not just the number of hours, even if you legitimately limit working in the business to between 15-45 hours. If the duties they perform are considered highly-skilled, this is defined by Social Security as substantial services as well. This could mean you are the only person in the business that can perform the skill or that the duties performed require high-level training. Check out America's Best Bookkeepers

Social Security considers the following when determining if the early retiree is performing substantial services.

  • The type of services performed
  • The type of business involved
  • The comparison of services performed before and after retirement
  • The presence and performance of a business manager
  • The amount of capital the retiree has invested in the business
  • The duties performed are considered highly skilled

To determine if a person is genuinely retired and not performing substantial services, staying within and income limits, and working the limited 15 to 45 hours monthly, Social Security may audit the business and require more information. These inquiries will only be made if you maintain ownership of the business or continue to work within the business or both. Check out America's Best Bookkeepers

When considering early retirement, contact Social Security in advance to find out the current limits and to determine what documents are needed to collect early retirement. After retirement, if Social Security determines at any time that you are exceeding the limits, your retirement benefits may be reduced or eliminated. For self-employed early retirees, each year of early retirement, Social Security will request earnings estimates for the following year. This estimate will determine retirement benefits for the first few months of the year and adjusted according to accurate self-employment information. Once full retirement is achieved at age 65, all limits are lifted, and there are no further criteria for the self-employed retiree.

If you are self-employed, being able to retire early and collect benefits may be a good option. But before you take steps to retire early, determine if you are genuinely ready to give up the business or reduce your involvement. Social Security sets strict early retirement limits, and if you are not prepared to stay within them, then early retirement is not for you. There is nothing that says an entrepreneur or small business owner has to retire at 62 or 65. If you are enjoying what you do and unable to give up the business, don’t force it. But if you are ready to close the business or give over the reigns, this information will help you do it as early as 62. Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Save in your 40s - Complete Controller

Every responsible adult would agree that savings are essential at any age, but most middle to lower-income earners have little to no savings by the time they reach forty. If you put it off or life had you living paycheck to paycheck and staring forty in the face, it’s not too late to start saving. Below are some tips to help you save money for retirement, emergencies, and other life goals. Check out America's Best Bookkeepers

Investments

When people hear the word savings, they generally think of taking a set percentage of their paycheck and putting it directly into a savings account. While this is a good idea in the respect that you are working to save money, bank savings accounts are not the way to save towards big goals.

 

Savings accounts are often low interest and are closer to putting your savings under your mattress or in the cookie jar. Instead, consult a professional financial planner and find ways to invest money to gain you more interest and grow your money more quickly. These investments could be through mutual funds, investment savings plans, investing in stocks, or buying properties or items that appreciate over the length of ownership. The essential thing to remember about investments is that you should research options and understand the risks and rewards. Check out America's Best Bookkeepers

 

Multiple Streams of Income

Besides investments that increase your existing income, another way to save towards your goal of three times your annual income by age forty is through additional income streams. In today’s world, the side hustle is typical as people make ends meet or work towards savings or other life goals financially. These side hustles could include driving for Uber or Lyft, or Postmates, etc. Like investments, additional streams of income should be well researched. Some options require little of your time and virtually no interference with your main job paying the bills.

 

Retirement Savings Plans

Many companies offer a retirement savings plan. This savings plan is a fund that the employee will contribute to from each paycheck. In most cases, the companies that provide retirement savings plans will also have offers to match a certain percentage of what the employee is investing in. While retirement savings plans are a great way to save money that has you seldom missing the money put into them, there are also some drawbacks to this type of savings. There are often penalties on early withdrawals of the money. Even because most of these savings plans are not taxed at the time of savings, you will owe a tax percentage on the savings when you withdraw the funds. Many retirement savings plans are also attached to mutual funds to increase them and are vulnerable to market fluctuations. When the economy is in a downturn or recession at retirement or the time of withdrawal, your money will not hold as much value. Check out America's Best Bookkeepers

 

Conclusion

Though leaving your thirties behind and facing the fabulous forties seems daunting, when it comes to savings, it’s easier than you think. Investments, multiple streams of income, and retirement savings plans are three reliable ways to save money for emergencies, big purchase items, and retirement. Most people decide that if they didn’t start saving earlier, they are too late to start in their 40’s, which is not factual. Any age can start saving if they have not and decide to put some money aside. Be prepared to be more aggressive to save what you need for the things important to you, but if you follow these ideas, you will be saving in your forties in no time.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Buy an Annuity - Complete Controller

Annuities are considered hot products, especially when it comes to retiring. Millions of annuities are being sold each year, and the insurance companies that sell these annuities are earning billions of dollars every year. There is no doubt that annuities are good for insurance companies, but are they good for people? Even though annuities can play a vital role in a person’s retirement plans, they are not beneficial for everyone. Below are a few reasons why a person should think twice before buying an annuity. Check out America's Best Bookkeepers

  1. Never buy an annuity if you are successfully able to manage your own money

When a person buys an annuity, they request an insurance company to take over their finances and manage their retirement assets while providing them with a limited monthly income. Insurance companies are more than willing to assist their clients with this, but, of course, the client will be charged an ongoing fee for this service. So, if a person successfully manages their funds without any external help, they should avoid buying an annuity.

  1. No need to buy an annuity if you have enough money to cover your income needs during retirement (regardless of how long you may live) Check out America's Best Bookkeepers

Accumulating adequate retirement savings can take a lot of time and hard work. However, a person should invest these assets to produce the necessary income needed during retirement. For example, a person can easily invest their assets in mutual funds and pull out a certain amount of money every month to cover the costs of living. As long as a person has enough funds and is not concerned with the unreliable changes in the stock market, they will have a reliable income, so there is no need to buy an annuity.

A significant benefit of getting an annuity is that the insurance companies will guarantee that they will continue to get a revenue, regardless of how the stock market is doing or how long a person will live. However, the insurance company will be charging a large fee to assure this guarantee and even keep the remaining funds if the client dies before the amount left is fully paid out.

  1. There is no need to buy an annuity if your spouse can manage the remaining assets after your death

An annuity also has a “joint-and-survivor” income option that a client can take. According to this, when the main client dies, the living significant other will get a share. Nevertheless, obtaining an annuity with such a feature will significantly decrease the initial amount of revenue, which can be less than a person’s needs during retirement. If a couple feels that both spouses can manage the money without assistance, there is no need to buy an annuity. Check out America's Best Bookkeepers

  1. If your retirement plans may change

A big marketing point for a secure annuity is an insurance agreement based on guarantees made by the insurance company. Unlike investing in a business, when a person puts their money in an annuity, the insurance company assures them that they will not lose their money. Once they start to pull down income in retirement, these insurance companies guarantee that the client’s revenue will never decrease or stop.

When it comes to retirement, guarantees are good, but with the secure income comes inflexibility. Once a client puts their funds in an annuity and starts to get revenue, they lose control of their assets to the insurance company. Even if their situation changes radically or they get sick. Sadly, there are limited and expensive options available to respond to those changes. This is a significant reason a person should consider all options before buying an annuity.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Now that you have retired, you have to care about the extra expenses. You will think twice before spending your money on movies. If you plan right you can easily live your retirement life happily. There are a few steps you should follow in order to live the retirement life you have always been dreaming of.

  1. Get a Job:

    That might come out as ironic but getting a job is the best thing a retired person can do. Firstly, it helps you in leaving the financial stress behind. Moreover, a retired person has always been used to going on a job. A sudden change is exciting for a few days but is stressful later. Getting a light job that is not related to your previous career is refreshing and will help you tackle the financial issues too.
  2. Volunteer:

    Since you are free this week, you can go for volunteering in any not-for-profit. You can teach children for free or help out in some shelters. This is the best and most popular activity among the retirees who try to find some work to prevent them from laziness. During the era of inflation where every organization is trying to cut back the cost, a free helping hand would be the best for them. Choose volunteer work that suits your mood and goes for it!
  3. Sports!

    We all know for whom golf is famous for. Go for some sports which are popular for elder people. It will help you feel pleasant. If you are wondering what to do with your life, try golfing. You wouldn’t realize how fast time will go by. During your job life, there must be a point where you would have felt that you had missed out on learning sports. Now it is your chance! You are free and alive. You can enjoy your life doing whatever you like!
  4. Start a Business:

    Sounds full of trouble, but it isn’t. You can even find a hobby and start a business from it. Taking care of pets, taking care of children, guiding people about destinations, repairing bicycles, among others, are the things you can always go for if you are fond of any. These businesses require minimal to no investment. You can start a daycare even at your home if you like and grow the business after earning a few bucks.
  5. Travel!

    Traveling is the best way to keep yourself entertained. Everyone loves traveling. Just buy a motorhome and take your bed and kitchen with you wherever you travel. You can live wherever you want. You can spend any amount of time anywhere you like. It is your retirement and you should use it to fulfill all the wishes you have been hoping and wishing for.

After retiring, you can do a lot of things to keep yourself entertained like taking care of children, joining a fitness club, starting a business, remodeling your house, moving to the country, going into public service, getting a part-time job, or write a book. You can also spend your time learning new skills like playing the guitar, learning a new language, or getting skilled in a specific computer program. You can use your retirement however you want. It is your gift after the hard work you have done in your life. Now sit back, make a list of all the things you love, and enjoy!

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Although the topic of retirement is touched or talked about a lot, many young people do not take it seriously. However, the day will come when they are somehow forced to save for it. The important thing is that if you now have the time, the money and above all you are at an age where you can build your retirement, you must start. Save time and be sure now to lead a quiet life for future retirement.

 

Saving for retirement

Regardless of which generation can be categorized, it is time to change bad financial habits, these three keys will guide you to start saving for retirement.

 

  1. You must develop your ability to save

Investment is a very important part of growing our finances, but before that, saving is important. You must go step by step without stepping forward or skipping steps. The beginning of retirement savings is precisely to save. What you need is a source of income that allows you to raise the necessary money. This source comes from your salary. The problem begins when you are out of work, then you must look for the means.

Once you have an income to start your savings, you must have a goal, this savings must be three times the salary you receive. The savings you intend to make is also called a financial cushion, and must be in a savings account.

If you already know what your goal is, now you must have a strategy. How much money will you pay monthly? The recommended is between 10 and 15%. You should organize your budget so that at the end of the year that percentage of your annual salary saved will result.

 

  1. Enter the world of investments

The first thing to think about when talking about investments is the stock market, this seems like something very complicated. Entering to invest in the stock market only requires that you are well informed and that you also invest in several sectors.

On the other hand, the stock market is not the only place where you can invest your money, there are a large number of options to invest. Not forgetting that this money that you intend to multiply is intended for retirement. The recommended is something simple like starting with a portfolio of indexed funds, these will replicate your actions and it will be enough.

Regardless of which option to invest you choose, you should look for a long-term growth of your money with which to build your financial cushion.

 

  1. Approach professionals

It is good to start our savings and our own financial mattress, but it does not hurt to go with professionals. Many companies offer retirement savings advice, and you can find a plan that fits your needs. But before taking the step, investigate whether they are reputable and reputable companies, and compare options. Not all will adapt to your needs.

 

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Couple of man and woman sitting in front of their home or house in wicker chairs
Retiring without a mortgage is an American dream. Most Americans dream of retiring without carrying a heavy burden. The kind of stability needed to earn cash to keep up with mortgage payments doesn’t appear after retirement, unless you continue working. The home is a reliable asset that is termed as the retiree’s nest of eggs they own and, also, is a depiction of financial solidity. For many, a family’s financial strength is portrayed by the ownership of properties and owning a house.

However, it’s easier said than done and that’s why you’re here. There are many ways to retire without a mortgage. Some are easy, others are not. We would like to stick with the ones that aren’t as technical as setting up savings accounts or using high tech gadgetry to monitor business prospects, no! None of that! Here, we are going to talk about a few ways that could easily help soon-to-be-retired professionals who have mortgage issues relieve themselves of dire stress.

One great way is the obvious, to retire after paying off your mortgage. This could be a lengthy process but considering paying your mortgage ahead of time would significantly allow you to enjoy your retired life with ease. To retire without a mortgage, a certain tenacity is required in order to reap the benefits after blissful retirement. This option may help you, depending on your professional choice of career.

Early Settlement

If you have the financial capacity, an early settlement of all mortgage payments helps immensely after retirement. It can help free up cash that can be used in more places than one. The notion of having plentiful cash at your disposal is a highly attractive one. So, where possible, make it a point to pay earlier than anticipated or scheduled. By saving interest, you reduce your payments by thousands of dollars. To retire without a mortgage, the interest part of the hefty payments is burdening as most of the cash that you hand in has a certain percentage deducted. At the end of the day, your actual payment isn’t building up as you expect. This deducted amount, when accumulated, saves thousands and this may be a viable option for those who wish to save money straight away. By paying off other heavily pressurizing payments, relief can be found and the money can be used someplace else, where applicable. Maybe even consider creating a retirement fund that will help with vacations or holidays in the golden years!

If That Doesn’t Work

If it doesn’t pan out for you to retire without a mortgage for some reason, there are other ways to compensate for this drawback. We do realize that this neat little trick won’t work all the time, so it’s good to have some ideas to rely on if everything goes south. If you’re in a stable financial condition or money isn’t an issue at this moment, it is highly recommended to save enough for an emergency fund. This is a vital but seldom implemented idea for all homeowners. Keeping a savings fund that is equivalent to at least four or five mortgage payments is an ideal way not to get stressed out after retirement. Getting some financial advisory won’t hurt either. In fact, it may even streamline your expenses to help you retire euphorically. Paying off high-interest payments will also enable more to be done with your income. Eradicating and finishing off a credit card or loan debt is strongly recommended. All of the cash can be contributed towards retirement, if needed. Create a plan, make efforts to fund this plan each month and work on it. Make it a priority to save as much according to your plan as possible. In the pursuit to retire without a mortgage, at the end of the day, this plan will be your knight in shining armor. This sort of financial investment works on many levels and we insist on trying this method.

Other Things You Can Do

Keep in mind that there are always options. There is never a dead end and, if you are still confused, here are some other ways that help with reducing mental stress after retirement.

Short-Term Loans: 

Although not advised unless necessary, taking out loans would help contribute immediately but also cause you to incur extra payments each month.

Smaller Housing For Reduced Costs:

By moving into a smaller place, not only will your mortgage bill be less, but maintenance costs lessen as well. Utilities will also fall dramatically enabling you to save more.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

retirement debt - Complete Controller

Going into debt has forced most households to struggle to make ends meet. Without evaluating the repercussions, they keep borrowing money from different sources over and over again to fulfill their dreams and desires. There comes a time when they find themselves stuck miserably in financial obligations, and it becomes challenging for them to meet their debt repayment schedules. This indicates that debt levels among poor, marginally poor and moderate-income households have increased over the past decade or so.

 

Even high-income households are not that far behind poor or moderate-income level households. According to a study, the highest-income households carry the largest amount of debt. This is an alarming situation for all us, no matter how well we are managing our debt repayment schedules. Once you get into it, it can feel that there’s no way out! The study further revealed that people don’t borrow money for fun; they borrow it for meeting financial uncertainties. The need for going into debt is forced by economic factors, such as recessions, high inflation rate, internal/external financial mismanagement, etc. Check out America's Best Bookkeepers

Debts—Tackle Before Your Retire!

Money does not discriminate. It doesn’t matter if you make $25K or $250K a year, you will never win a race against high-interest debt. If you want to enjoy complete financial freedom, you need to spend less and save more for your rainy days. They will never tell you before coming—they will show up any time when you’re least expecting it. As far as the debts are concerned, it would help if you tackled them before you retire, or you’ll probably find yourself surrounded by a retirement crisis.

 

No matter how much you earn through your working years, loans, or outstanding amounts always raises serious concerns around managing your finances. Even slight mismanagement in finances can cause you a great deal of stress. Loan repayment requirements, during your working years, will restrict or prevent you from saving more for retirement. Deal with your loan obligations or repayment schedules within your working years to save more for your retirement. Here are four debts that you need to tackle before you retire. Check out America's Best Bookkeepers

Credit Card Debt

Winning a race against high-interest debt is no easy feat; you have to be careful whether you can afford a credit card or not. Getting a credit card is easy, but repaying it is a lot harder than anyone can imagine. According to accounting data, about 1 in 3 American adults use a credit card, which means that its usage is quite extensive. This doesn’t make it hard to see why most Americans are strangled in debts. Thus, you must get rid of it, as credit card debt typically carries a high-interest rate.

Moreover, you will have less money to put in retirement funds or savings. It is something that eats your retirement savings without even realizing it. Hence, you must handle credit card debt, or it could even raise serious legal and financial issues.

Student Loan Debt

It gets tough for baby boomers to save money, especially when they are liable to make debt repayments. According to a survey, those who carry student loan debt find it difficult to save money for retirement. This is why paying them off within your working years is a big plus for you, no matter how much one may argue. The ultimate goal is to maximize your retirement savings, so you have to be careful in dealing with student debts. You must not miss your repayment schedule.  Ensure that the record is well-maintained for dealing with any sort of discrepancies.

Mortgage Debt

Mortgage debts are a huge stress for most American households. Most people die before paying their mortgage loans, especially those who start a mortgage plan a bit late in their lives (let’s say in their 40s-50s). However, those who start at a relatively younger age (in their 20s-30s) manage to pay their mortgage loans by the time their retirement rolls around.

Nearly 75%  of people fail to meet their monthly mortgage repayment schedule. This indicates that people find it extremely difficult to pay off their short and long-term debts. It would be best if you devised a repayment mechanism to make scheduled payments. A mortgage loan is one of the most important loans that you must tackle before you retire, or it will eat up your retirement savings. Check out America's Best Bookkeepers

Medical Debt

Medical loans acquired at any stage of life must be repaid in time. If not, expect to face a possible financial crisis at the end of retirement. Some agencies may finance your medical needs but look out for those who offer easy and smooth repayment schedules. Medical loan debts are very burdensome on those who are near their retirement age. Therefore, you plan and tackle these before you retire or be mentally prepared for facing financial difficulties at the end of your career.

Conclusion

People across the globe face extreme difficulties in meeting their financial debt obligations. Debt loans can help us to meet uncertain financial situations. But, paying them off, in the long run, becomes extremely challenging for the entire family, especially when you are near your retirement. You must prioritize and tackle your debts before you retire to have a financially secured retirement life.

 

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