Independence Day is almost here. It’s important to recognize all the liberties we enjoy in this country, but you may still need to work at one particular type of freedom – and that’s financial freedom. How can you achieve it?
First, contribute as much as you can afford to your retirement accounts, such as your 401(k) or another employer-sponsored plan. And when your salary goes up, increase the amount you put into your 401(k) each year. Beyond your 401(k), you may also be able to contribute to an IRA, which also offers tax benefits, plus a wide array of investment choices.
Building your IRA and 401(k) is one thing – but protecting them is another. You may face situations in which you need a sizable amount of cash in a hurry, perhaps for a major car repair. Dipping into your retirement accounts early could result in penalties, but you can help avoid this setback by building an emergency fund.
Another way to help preserve your financial independence is to protect your income, which could be jeopardized if you become ill or injured. Your employer may offer disability insurance, but if it’s not enough, you may want to consider private coverage.
Here’s one more suggestion: Guard yourself against the high costs of long-term care, such as an extended nursing home stay. A financial professional can suggest an appropriate strategy.
By addressing these areas, you can go a long way toward attaining your financial independence.
This content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.