Category: Main

How To Retire Early? 5 Essential Steps To Jumpstart You

How to retire early? In your 50s, 60s and above

You may think it’s only in your dream, but I want to say it’s possible.

How?

This article is enlightened on 5 steps to help achieve your dream of retiring early.

  1. Sweat out the details how much money you’ll need to retire early

Get an inventory of your savings, future benefits, and income, investments, pensions, health benefits, Social Security benefits or even an inheritance.

And then work on your expenses – health care costs, living expenses plus any other relevant expenses.

Calculate your need until the ripe old age of 95. Add everything together and you’ll get the amount you need to accumulate through investments, benefits, and Social Security. Don’t be shocked if it accumulated in “millions”!

Calculate how much you need to save per month. Don’t be shocked again that it’s a huge amount.

  1. Save, not when in your 30s, 40s or 50s but in your early 20s

The best is to start saving as soon as you start to work. Each month, stash away the amount you need to save by automatically deducting it from your paycheck. In this way, it’s less painful for you because you would naturally get round to adjust your spending to the money that’s left over.

When you’re young, time is on your side – the power of compounding interests on your savings is tremendous!

Try comparing the amount you can accumulate when you start to save in your 20s and when you start in your 30s, 40s, and 50s.

No rocket science here. Its plain fact you win out when start saving in your 20s. Your money runs way ahead of one who starts to save in his 30s, 40s, and 50s.

You might think you can delay because you can catch up on lost time by saving more in later years but sorry to tell you that money don’t work that way.

  1. Study and research diligently on the stocks so you’re well-informed, hence can form intelligent decisions whether to invest in them. Invest smartly and wisely by having a portfolio mix of stocks that have long-term growths with reasonably lucrative returns.

There’s no way you can retire early if you don’t venture into investing in stocks. Stocks though are risky, on average, they yield you higher returns than your savings put in a savings account, checking account or money market account. Since you’re retiring early, you got a long stretch of life that’s without full-time work and income, so you really need more of the “juice” that stocks generate.

To keep costs down, choose low-cost investments, like index funds, over annuity and life-insurance products, whose high expenses and fees make them unattractive options?

  1. Stay absolutely out of debt, except maybe a house mortgage

This is especially so for credit card debts, college education debts, and car loans.

If you’ve all these debts, you’ll be tied down in paying them and disrupt and distract you from your savings effort.

  1. Find out about any penalties that you may incur due to early retirement

Do you know IRAs and pensions typically charge a 10% penalty if you retire before the set retirement age?

So, check out when you can retire to avoid the penalties.

Learn how to save on your Medicare Supplement insurance by getting Mutual of Omaha medicare supplement plan G.

 

 

 

The core benefits of the Medicare Supplement Plan

Most times, we are stuck by the health care policy that will help us live a better life without spending a lot of money. Spending less when it comes to medical insurance is the priority of everyone. However, we may not be able to make it happen without the right plan.  This is the reason why Medigap plan comes in various packages to allow you make your choice The Part A and B medical plan from the Medicare program do not cover every aspect of our health needs.

The core benefits of the Medigap plans have been designed to bridge the lapses from the Part A and B medical packages.  There are plans that concentrate on the major health benefits while some deal with deductibles that happen monthly or yearly.

There are 12 Medigap plans available in the United States of America, but  it is not each of these plans that are available nationwide. However, the fact that some of these providers are ready to offer you all the plans does not mean that they would do that.  This is what makes the selection very complex for the average person.  Maybe,  you are thinking of the right plan to use, the first thing that you need to is to make your homework.  The companies may be similar in their functionalities but you have to look out for the options that will suit you best.

Merits of Medicare supplemental plans include:- large medical bill protection, coverage outside the US, guaranteed acceptance even if you have a health condition without extra charges, guaranteed renewable policies and support even in portability amongst others.

A Aetna Medicare supplement Plan G is generally offered through private insurance companies. These Medigap plans help pay some of the hospital and medical costs that Original Medicare doesn’t cover, such as copayments, coinsurance, and yearly deductibles. A person need to be already enrolled in Original medicare to be eligible for medigap coverage and hence they are not meant to provide stand-alone benefits.

 

Every Medigap policy must follow federal and state laws designed to protect you, and it must be clearly identified as “Medicare Supplement Insurance.” Insurance companies can sell you only a “standardized” policy identified in most states by letters. Each insurance company decides which Medigap policies it wants to sell, although state laws might affect which ones they offer. Also, Any standardized Medigap policy is guaranteed renewable even if you have health problems. This means the insurance company can’t cancel your Medigap policy as long as you pay the premium.

 

The standardized plans often come with varied prices according to cost set by the companies.  Take for instance, the senior citizens who are in dire need of a health care premium.  The government has gone a long way to ensure that everyone is able to get an affordable premium.  The solutions to health care have been made easier with the number of packages that have been made available for us.

Medigap plans have bridge the gap that  Medicare was unable to meet with its Part A and Part B medical insurance.  The package that you get when you are insured include coverage for emergencies that may occur even if you are not in the United States of America, specialized therapeutic care and cost of hospital stays that are extended.