Retirement and your 30s

You’re in your 30s and you hear from everyone that it is high time that you start thinking about saving for your retirement. It’s a new game for you and you really don’t know where to start. Don’t worry, let me help you out.

Needless to say, please pay off all your credit card debt first. It is expensive and most of the time it is there because you wanted to buy the latest and greatest consumer product. Now that you’ve hit your 30s you have realized that the latest and greatest isn’t always the best. Put aside money to take your credit card debt to Zero. You must also have enough money in your savings that you can survive for 12 months should your paycheck be taken away.

Many people in the 30s still have student loans that aren’t fully paid off. You should focus the majority of your resources to clear your student loans. This is because student loans are like a stubborn cough that won’t go away. In most states, even if you file for bankruptcy, your student loans will not be discharged. It is almost impossible to get away from repaying your student loans. Debt like that is dangerous and should be taken off the table as soon as possible.

The second think you should be thinking of now is getting your own home. Yes, I know you’ve seen a lot of people being burned by the recent housing crash but don’t let that deter you. You must know that in the long-run, a piece of real estate is going to give you security for your older years. The huge price decline will also mean that your monthly payments might even be cheaper than your rent that you’re paying now.

You might be at a point in your life where you’ll have people dependent upon you. You could have a wife and children to feed so you’ll have to think about their welfare should something happen to you. I’m talking life insurance. If something bad were to happen to you, you absolutely need to make sure that you have made provisions for them to continue their lives without you. I recommend a term insurance over the other types of life insurance simply because it is cheaper and offers substantially the same coverage.

A continuation of that is to think about getting a will or a Living Revocable Trust. A Living Revocable Trust is a document that says that your spouse or your chnfildren have the right to say who is going to take care of them and who is going to watch over your assets. Don’t leave your family hanging if you are incapacitated and can’t make decisions.

For now these are the important factors that you should be concentrating on in your 30s. Get these things done and you are will on the way to a comfortable retirement free from financial stress.

Ryan Parker is a Certified Financial Planner and is the Founder of CreditRelease.com which specializes in bad credit loans and other adverse credit history financing solutions.