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Retirement Planning - Staying Away From Debt During Your Retirement

by Jason Holmes

Planning your retirement from the beginning is important so that you don't fail to secure your future. If you really want to have a secure and stress free retired life, you should also avoid carrying forward your debts into your retirement life. Thus, it is essential for you to get advice on debt consolidation if you think that you have several debts now.

Importance Of Retirement Planning

Retirement planning is one such thing that cannot be done in a day or even some weeks. You need to first determine the way in which you want to lead your life after retirement. On the basis of your desire, you will have to prepare a plan. You will have to think of some possible actions that you will have to take for securing your retirement life like investments, savings, paying off your debts and so on.

There are various kinds of retirement investments. These are 401(k), the defined benefit plan, IRA or the Individual Retirement Account, Defined Contribution Plan, etc. 401(K) is a kind of voluntary investment account and your employer may offer you this plan. The amount of money which you contribute towards this account is known as the contribution percentage. If you withdraw any amount from this account you will have to pay tax on that withdrawn account.

The defined benefit plan guarantees that you will receive a specific amount each month after your retirement. On the other hand, if you go for a defined contribution plan, you will have the opportunity to choose on some of the investment types available under this plan.

As for the IRA, you can put money into it annually and if you withdraw money from it, you will have to pay taxes on that amount just like the 401(K). The greatest advantage of investing your money in IRA is that it lowers your taxable income. However, before you go for any kind of retirement policies, it is better to take advice from a financial and investment planner.

Other than getting advice on your retirement policies and investments, you should also take advice on debt consolidation, if you are having problems with debts now. You should know that if you have several unsecured debts like credit cards, personal loans, payday loans, medical bills, and so on, you can consolidate all of these together into a large debt with lower interest rate.

After consolidation, you are required to make only one payment each month and that to lower in comparison to the several ones that you had to make before. Moreover, you are now required to deal with only one creditor or lender. However, in order to achieve right consolidation, you can get advice on debt consolidation from a good credit counseling agency.

As for the baby boomers, they have lived differently than their parents and so their retirement planning will be different too. They intend to vary their retirement planning. That is, most of them are thinking of both enjoying their leisure after retirement and do some kinds of work too. Some even think of starting a small business after retirement.

Jason Holmes is a regular writer with Debt Consolidation Care and is also a contributory writer with other financial sites. His expertise is woven around various aspects of the debt industry and with his e-books he tries to impart to people the different situations and simple solutions to get out of difficult situations. Some of his works include e-books like 'Credit Score The Quintessential Therapy for a Happy Pocket', Take Creditors and Collection Agencies to Small Claims Court' and, My Story- From Depression To a Smile'.

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