The first steps in becoming more disciplined are deferred gratification and not meeting living standards above your financial means. We're living longer in part due to medical advances, so retirement is lasting longer. If you want to tap your retirement fund early, check with the IRS or your accountant to see if your situation qualifies you to do so without a penalty. More Incentive trusts Incentive trusts allow parents to pass on their inheritance with as many or as few stipulations as they wish. Tax-deferred annuities can be a good source of retirement income for those who don't have a pension plan at work, but best considered after other retirement plans.
Annuities are expensive and the variable annuities accrue higher taxes than a mutual fund.
More Asset allocation Asset allocation can mean the difference between a good portfolio and a great one. The right mix of stocks, bonds, cash, and alternative investments can help ride out stock market changes with less damage to your portfolio. Knowing your investing time frame is crucial to building the right mutual fund portfolio. You can afford to invest in riskier, growth-oriented funds if the money will sit for a lengthy period, whereas portfolios held less than five years could end up in the red or just break even. More Education IRAs Education Individual Retirement Accounts have terms different from regular IRAs.