Avoid tapping retirement funds in order to pay off your bills. For instance, the money you contribute towards 401k account is deducted from your salary prior to calculating your income taxes. So, if you borrow from your 401k plan, you won't be able to get tax-deferred returns on the account. Moreover, you'll be paying taxes twice - once when you repay the 401k loan with after-tax dollars and next, when you access the funds at retirement.
An asset can be anything of monetary or exchange value as owned by an individual, business or institution. An asset can be real estate property, personal property, saving and investment such as bank accounts, stocks, mutual funds and the like.
Proper financial planning is the secret to a debt-free life. Maintain a strict money management policy and develop the habit of savings. Prioritize your needs and act accordingly and you will stay clear of the debt monster throughout your life.
Retirement Planning
The changing world of retirement plans, in relation to changes in population and increasing age, is clear that these developments pose both opportunities and challenges. The present circumstances require a review of the current pension structures because people live longer while they give birth less often, as this may not be sustainable for future generations. It is further complicated by the emergence of “gig economy” jobs, where many workers do not have access to traditional employer-based pension plans.