Start Saving for Retirement Now
A common question that financial advisers get is, “When should I start saving for retirement?” While this may seem like a reasonable question, the only good answer is “now” or “as soon as possible.” In fact, most financial advisers suggest that one start saving for their retirement in their early 20’s. While for many, this mark has been passed, getting a head-start and saving for retirement immediately is always the best choice. There are a variety of reasons why saving for retirement early is a good idea, one of the most important of these is compounding.
The Power of Compounding Returns
In any investment that offers a fixed return rate, time will play a large factor. This is the essential core of a financial term, and potential, called compounding. Compounding occurs when assets are reinvested into themselves, causing exponential growth over time.
A prime example to demonstrate how powerful compounding can be is the case of two 20 year old friends, Jeff and Davis. Both had an investment opportunity providing a 15% interest per year. Jeff, wanting to enjoy the money he currently had, decided to wait for 10 years before investing. Davis, on the other hand, decided to put away the small amount of $1000 per year for the years 20-30.
Upon both reaching 30 years old, Jeff decides to allocate $3000 yearly towards his retirement and for the next 20 years continues to do so. Davis, in a severe financial bind due to injury, is unable to save for retirement any longer.
Upon reaching 49 years of age, Davis’ initial retirement investment of $10,000 reaches a huge $340,000 from the effect of compounding interest. Jeff’s $60,000 investment, on the other hand, is only worth a little over $310,000 at this point. Even though Davis wasn’t able to invest in his retirement for 20 years, he still came out ahead. This is the power of compounding in action.
By following the exponential nature of compounding, one can see how tremendously important it is to save for retirement early. By doing this, one can guarantee retirement security.
Why Else Should I Start Saving for Retirement Now?
By saving early, one has a much better opportunity to scan the horizon for great investment opportunities that would have been missed otherwise. Over time, one gains experience investing and can allocate retirement funds into much more profitable areas. This alone can drastically increase the likelihood of a comfortable and successful retirement.
Can You Find Affordable Life Insurance For Type 2 Diabetics?
Type 2 Diabetes tends to show up after age 40, but some people develop this medical condition earlier in life. Typically, type 1 diabetics appears in childhood or in young adult years. In any case, many people with type 2 diabetes wonder if they can get good life insurance rates.
It is unlikely that people who suffer from this medical condition will qualify for the very lowest preferred rates that you might see advertised on TV. The reality is that few people qualify for these really cheap rates. They make good TV advertisements, but they may not reflect reality for most people, but people with diabetes can get life insurance and rates much less than they expect.
How Can Type 2 Diabetics Find Good Life Insurance?
The best tactic might be to find a specialized broker who has experience getting coverage for people with different health problems. This is particularly true if you need a very high level of coverage. If you just need an average policy, you might simply search for online quote forms that can help you compare a variety of different insurers.
If diabetics manage to keep their blood sugar under control, they might qualify for average prices. Most insurers do not decline or severely rate up applicants just for having type 2 diabetes. They may not be pleased if a diabetic is also very overweight, smokes, or drinks a lot of alcohol though. It is usually a combination of factors that matter, and just one thing might not make that much of a difference.
What kind of life insurance should diabetics get? If you have type 2 diabetes, you will probably get the very lowest rates if you choose term coverage. However, you can lock in rates if you buy a permanent type of coverage like whole or universal life. You have to compare the amount of coverage that you need against your budget and needs.
Life Insurance – Do you really need it?
Bills on top of bills. We’ve all been there. Every month seems to fade right into the next and at the end of each one we’re staring down yet another rapidly growing stack of bills! It is only inevitable that you begin to wonder which of them can be removed altogether. One of the most commonly nixed bills is life insurance. Is it really all that necessary? After all, you will never see any immediate benefit for it.
It is very easy to become “now” oriented in your thinking, especially in times of immediate financial trouble. If you do have a life insurance plan already however you might want to consider other factors before getting rid of it. The unfortunate reality, as we all know, is that we must pass on one day. Even if those you leave behind are set financially, other factors such as the cost of your funeral and burial may well set them back. If you pass with any other unpaid bills, debtors will inevitably come knocking on your family members’ doors as well. And if your family members happen not to be financially set, then that is all the more reason that you should be looking into leaving something behind for them.
You can always tell yourself that you can manage this by always hiding something away or saving up, those resources will always be the first place pulled from when you need a little extra to get over an unexpected financial hurdle. With a good life insurance policy, you will have an ongoing “sure thing” to leave behind for your remaining family members. Even if you shop only with the best life insurance companies, you will find that the security and peace of mind provided is surprisingly affordable.
If your current policy is leaving you bone dry, meet with an insurance agent immediately. Inevitably, someone will have an option that works for your particular financial needs. With matters of life and death, there is no such thing as “too careful.” In the end, your family will be most grateful that you played this one as cautiously as possible.