Retiring Soon? Find Real Financial Freedom with CDs

Decades of hard labor will eventually pay back. As you near retirement period, you will see drastic changes in your lifestyle and of course the workload you have. But unfortunately, most office workers who are nearing retirement age are not satisfied with what they have achieved to be able to look forward to a stress-free retirement ahead of them. There’s just much blatant worry on their faces as they come nearer this much anticipated event in their working careers.

While the supposedly exciting retirement which begins a new chapter in an employee’s life is full of financial woes—especially now that the recession created a dent in the worldwide economy and trauma in the minds of the people. But this is not a time for desperation. You still have years before retirement comes and surely, any financial coach will be positive that a couple of years will be enough to build your wealth before retirement.

Set aside a portion of your monthly paycheck for buying CDs. Saving up is just a matter of mental discipline. Passing off the chance to watch baseball live might just make your retirement a little bit happier. When you have finally saved up the amount you want to invest in certificates of deposit, ask for the maximum length of time allowable for the amount you are going to invest and watch your money earn interest every month. Now, you have a dispensable income coming from your investment on top of the regular paycheck you are earning.

But if you think this is the end of it all, it is not. Earning for a while then using it to buy your fetishes and a 6-pack beer for some happy time after work doesn’t make sense. Soon, you will be depleting your resources and you’d be back to square one. The earning interest of your investment can be reinvested into the original CD plan or you can simple buy another CD to invest in.

Think about this, when you reinvest your monthly revenue from the CDs, you are creating more wealth at the end of that day. Because the interest rates and the monthly revenue is dependent on how much the CD is worth. A $10,000 dollar worth of CD is good enough but pushing it to $50,000 is even better. The prospect of retiring makes it easier to save up this amount.

Another commonly asked question is when is the perfect time to just stop and collect the investments and the revenue. Actually, there’s no one that can assess which time is “perfect” for stopping the investment cycle. Even after retirement, you can still invest the lump some you will get from the retirement agency and pool it in another CD. And since it is as financially secure as it is in a low interest-paying bank, there’s no need to worry about emergency cash needs and stuff.

And besides, if you are worrying about 24-hour banking needs which CDs cannot provide. You have the freedom to set aside a portion of your retirement funds in a money market deposit account which even has check writing features to help you pay unexpected dues. These money markets will also earn interest for your money—only that it is lower than what CDs usually provide.

So there you have it, financial freedom before the age of 60. Just visualize what you want to achieve when you retire—what financial status you have, where you want to retire, what kind of retirement lifestyle you want to maintain. It all starts with what you want and doing something to make it come true. And after knowing all these strategies in CDs investing, all you have to do is to put it to the test and see how you will fare in the realm of investing.