Learn how your current family situation, where you live, and where you work can have implications on your retirement strategy focusing on debt/no debt scenarios.
- When it comes to retirement planning,…sometimes it's hard to sort out where you are…and what you need to do.…But if you'll take a few steps to assess…where you are right now,…it will help you chart a path towards retirement.…Now, no matter where you are in your life,…you have two key financial issues to deal with.…Net worth and cash flow.…Let's look at each of these separately.…The net worth is the value…of all of your assets minus all of your debts.…Now, don't get freaked out if you're looking at…a huge negative number.…
Most of us live our whole lives with a negative net worth.…By the time you retire, however,…you need to have a positive net worth.…And to get there, you need to have a plan…to pay off your debt.…Start by making sure you can manage your student debt…if you have it and have a plan to pay it off.…In the U.S., student debt cannot be forgiven,…so you can't run away from it.…For your mortgage, set a date…that you'll have it paid off by and think twice…before you take out a home equity loan.…And trying not to get swamped by credit card debt.…
- Recognize the strategy used to combat inflation while still working.
- Determine whether investing in a company or working for a company is more profitable.
- Summarize the concept of Dollar-Cost Averaging.
- Identify the simplest, easiest investment opportunity available for young workers just starting to invest for retirement.
- Explain what “diversifying” means by using an example.
- Determine whether incurring debt can have a financial advantage.