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Are you someone who has always been delaying your money matters? If yes, now is the right time to take control of your personal finances. With the upcoming New Year, it is important to be careful with your finances so that you don’t spend another year drowning in debt and in getting harassing calls from your creditors and lenders. If you wish to set the next 50 years of your life right and you want to spend a financially sound life, here are few steps that you can take.
Accelerate the speed of paying off debt
When you work during the last few years before retiring from work, would you like to deal with heaps of high-interest debt? Definitely not! To stay away from your current debt load during the time of retirement, you should start paying off your debt from now. Debt means anything from mortgages, car loans, credit cards with bigger credit card balances, and personal loans which you have been carrying for a long time now. You will definitely hear from retirees that living without a mortgage is definitely monetarily liberating and hence you should work hard to make timely payments.
Take a close and careful look at your life insurance
Do you still not have adequate coverage on your life insurance policy? Or do you think you’re underinsured? If answered yes, as per recommendations from The American Council of Life Insurers, sufficient life insurance coverage is 7-10 times your salary. Henceforth, if you’re someone who is earning $50,000 in a year, you would want a policy that could pay around $350,000 and $500,000 to your beneficiaries. People find out that by the time they reach the age of 50, the appropriate term insurance may be expiring and the life insurance requirements will increase.
Diversify your investments
This is that phase of life, you wouldn’t wish to make financial mistakes and investment blunders as they can derail your game plan for retirement. This is why you should ensure that you don’t invest your entire savings in only one investment account. In case you have investments, review your coverage or hire a financial advisor who can help you diversify your portfolio. Start adjusting your investment risk before you reach 50 years and this is how you can maintain the growth in the coming years.
Set up a trust or will
You must have delayed creating a will for too long a time constantly telling yourself that you don’t need to hurry about it. But hey, this is the best time to update or create your will. You can either hire a lawyer or pay him for creating a will or you can leverage an online software or use forms bought from a store that comprise of will that is pre-printed.
Therefore now that you know the different steps that you should take to spend a hassle-free retirement, what are you waiting for? Start taking immediate action and secure your long-term future.
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