401K & Other Retirement Thoughts

Hi SWARM Moms!

Are you contributing to your 401K?  If your company offers the 401K you must contribute to this plan.  This is free money and you must start now or restart, if you are like many moms who 'paused' during the height of the recession.  Pausing was not in your best interest, but with the many changes that were implemented over the last few years, many moms had no choice, but to stop paying into the retirement plan.  If this is you, get back into it now! When you go into work tomorrow, talk to your personnel people and sign back up...

Really Moms, this is free money, but it is also money that you will most definitely need when you retire.  Pension plans are too precarious to rely on and the government is not good at handling money so take matters into your own hands in order to live the life you want when its time to retire!  You must take advantage of all benefits that are offered to you as an employee.  

But don't rely on just the 401K for your future plans.  Now is a great time to consider purchasing rental properties ... and foreclosures have our names all over them.  Since we have been learning that the amount of money that we pay out for living space (mortgages, rent, etc...) greatly affects our quality of life, it makes sense then, to find a way to pay as little as possible for our homes.  If you rent, consider renting somewhere new (and safe) with a low monthly payment. If you are purchasing consider refinancing if you have a high interest rate.

One interesting idea regarding purchasing a rental is to consider a duplex.  This could be an ideal way to create some additional income while also having control over who is your direct neighbor,  It could be possible to have the rental pay for much of what your family rent would be.  Start saving now for a down payment.  We hope you realize the possibilities that exist when you approach your living arrangements in a different way. Be creative.

If you are a mom who wants to refinance, but your credit is not quite what you would like it to be, then take the time now to get your finances in order to improve your overall score.  Remember that if you are late on payments your score will drop, so here is a recommendation for improving your scores.  Have the bills that you find hardest to pay on time - automatically deducted from a bank or credit union account.  Some credit card and student loan companies will actual reduce the interest rate by a fraction or more of a percent, as an incentive for you to auto deduct.  (It adds up over the long run.) Do consider this type of payment plan, as it can help you in the long run; saving you time and reducing stress and even stamps and visits to the post office :)


Happy Savings Swarm Moms.