Four Steps to Become Financially Independent – Part 3

November 22nd, 2007 | Stacey | Debt Management, Financial Freedom, Financial Independence

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On your journey to be financially independent, today we will discuss the importance of planning for retirement.  After you properly manage your cash and get debt help, retirement planning is your next step.

The cost of failing to plan for retirement can be high, including the need to work through retirement and struggling to make ends meet in the face of rising costs and expenses. Also, when you fail to take responsibility for your financial situation, you are overlooking ways of accumulating capital and getting rid of unnecessary expenses. You can expose your family to financial risk and even pay higher income taxes.

Relying on Social Security or a retirement or pension plan is simply not a viable solution. Solid planning in advance gives you tax advantages, the ability to build interest and to make the most of the limited funds you are investing in your future retirement. You can save through defined benefit plans or defined contribution plans. Options to explore include state pension plans, private and company pension plans, IRA, 403(b) plans, 457(b) plans, Keogh (self-employed) plans, Optional Retirement Programs, life insurance programs, annuities and more.

Discussing your retirement plan with your financial advisor or accountant is a good way to know if you are on the right track. To become financially free, it is essential to get the right advice and start sooner rather than later when planning for your future.