Work toward your own financial Independence Day - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Work toward your own financial Independence Day

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Tuesday, July 3, 2012 2:45 pm

Once again, Independence Day is here, bringing fireworks and barbecues. Of course, the Fourth of July is more than hoopla — it’s a time to reflect on the many freedoms we enjoy in this country. Yet, for many people, one important type of freedom — financial freedom — is still elusive. So you may want to use this holiday as an occasion to think of those steps you can take to eventually declare your own financial Independence Day.

Here are some moves that can help:

• Create a strategy. Financial freedom doesn’t just happen — it takes planning, patience and perseverance. To work toward your financial independence, you’ll need to create a financial strategy, in conjunction with your financial advisor, and stick to that strategy. Over time, you’ll need to make adjustments, but if your overall strategy is appropriate for your goals, time horizon and risk tolerance, it should help get you to where you want to go.

• Contribute as much as possible to your retirement plans. Each year, put in as much as you can afford to your 401(k) or similar employer-sponsored retirement plan, such as a 457(b) if you work for a state or local government or a 403(b) if you work for a school or other tax-exempt organization.

These plans offer the potential for tax-deferred earnings, so your retirement funds can grow faster than if they were placed in an investment on which you paid taxes every year. Also, if you’re eligible, try to “max out” on your IRA every year.

• Maintain adequate life insurance. If you have a family, you aren’t just thinking of your own financial independence — you have to think of theirs, too. And that’s why you need to maintain adequate life insurance, particularly during the years when your children are growing up.

But even after they’ve left the home, you may find that life insurance can be valuable in providing retirement funds for your spouse, should anything happen to you. And if you have permanent life insurance, which contains an investment component, you can generally access the cash value, through policy loans or withdrawals, to help pay for your own retirement.

• Protect yourself from long-term care costs. You may never need any type of long-term care, such as a stay in a nursing home or assistance from a home health aide, but if you do, the enormous costs can threaten your financial independence — and possibly even put an economic strain on your spouse or grown children.

After all, the national average rate for a private room in a nursing home is more than $87,000 per year, according to the 2011 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs. And the national hourly rate for home health aides is $21, according to the same survey. Medicare typically pays very little of these costs, which puts the burden on you.

Fortunately, some investment vehicles can help you deal with long-term care expenses.

Consult with your financial advisor to determine which of these vehicles may be appropriate for your needs. A national holiday won’t be declared when you achieve your financial independence — but, for you, it will be a time well worth celebrating. So do what it takes to work toward the arrival of that happy day.

• This article was written by Edward Jones for use by Ahwatukee Foothills Edward Jones Financial Advisor Joseph B. Ortiz, CRPS. Reach Ortiz at (480) 753-7664 or joseph.ortiz@edwardjones.com. Chartered Retirement Plans Specialist and CRPS are registered service marks of the College for Financial Planning.

More about

More about

More about

  • Discuss

Kerry’s Blunt Words for Israel Denounced by Lawmakers in Both Parties

A bipartisan chorus of lawmakers, upset with President Obama’s decision last week to allow the passage of a United Nations resolution condemni…

Published: December 31, 2016 - 10:14 am @ http://www.nytimes.com/2016/12/28/us/politics/john…

Gov. Brown Appoints New Public Utility Commissioners to Replace Florio and Sandoval

Martha Guzman Aceves and Clifford Rechtschaffen both come from the governor’s office with strong environmental protection backgrounds. Martha …

Published: December 31, 2016 - 10:14 am @ https://www.greentechmedia.com/articles/read/gov.-…

Presidential vote in congressional districts points to Democratic risks in 2018

Democrats started the 2016 election cycle with pessimism about their chances of taking back the House of Representatives. For a few moments th…

Published: December 31, 2016 - 10:13 am @ https://www.washingtonpost.com/news/post-politics/…

Obama preparing to penalize Russia for hacking

WASHINGTON — The Obama administration is preparing to penalize Russia over the hacking of Democratic officials during this year's presidential…

Published: December 31, 2016 - 10:16 am @ http://www.usatoday.com/story/news/politics/2016/1…

Mail truck tips on Mesa street

MESA, Ariz. - A mail truck ended up on its side in a crash Wednesday. Mesa police say a single-vehicle collision left the United States Postal…

Published: December 31, 2016 - 10:12 am @ http://www.12news.com/news/local/valley/mail-truck…

Reports of mall disturbances light up social media

A flurry of reports of mall melees and disturbances rippled across social media Monday on a day Americans swarmed shopping hubs for post-holid…

Published: December 31, 2016 - 9:51 am @ http://www.usatoday.com/story/news/nation/2016/12/…

Graham, McCain want Russia sanctions after election hacking

Top Republican senators said Wednesday that the incoming Congress and President-elect Donald Trump should impose new and tougher sanctions on …

Published: December 31, 2016 - 9:13 am @ http://www.foxnews.com/politics/2016/12/28/graham-…

Immigration Is the Only Hope for States That Helped Trump

The decline of manufacturing does not explain the decline of Wisconsin. Photographer: Daniel Acker/BloombergFacebook Twitter Email Print Share…

Published: December 31, 2016 - 7:17 am @ https://www.bloomberg.com/view/articles/2016-12-28…

Creator of the Red Solo Cup dies at 84

FOX 32 NEWS - The creator of the Red Solo Cup died on Wednesday, December 21, 2016 at the age of 84. Robert Leo Hulseman lived in Northfield, …

Published: December 31, 2016 - 7:07 am @ http://www.fox4news.com/trending/225996868-story

12 Cars You Can Legally Import to the US in 2017

slide-4320347 There were plenty of great vehicles produced abroad that Americans (outside of Canada) haven't been able to import until they hi…

Published: December 31, 2016 - 7:06 am @ http://www.autoblog.com/photos/cars-you-can-legall…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…