Should I Accept an Early Retirement Package?

Companies are providing this option to their elderly employees, especially when faced with a need to cut costs or downsize. If you’re one of those offered the package it might look attractive at first glance, but think again. Sure you’d get a huge lump sum of money upfront and if your company has a well-laid out early retirement program you might even get other benefits such as a health or life insurance.

But try to assess the long-term effects over the short-term benefits before you take the offer. If your present financial situation and lifestyle can let you and your family manage to go without your employment for a long period of time, then go ahead and enjoy that early retirement offer.

Taking Advantage of Compound Interest

It’s said that Albert Einstein called compound interest the eighth wonder of the world.

Well, it certainly yields wonderful results. In a nutshell, it’s when an asset earns money, which is reinvested so it earns its own money. It’s making your money work for you—every second, even while you sleep.

Compound interest is the secret to long-term earnings. Let’s say you have a thousand dollars. Put it in a savings account with 5% interest and after 12 months, you’ve earned 50 bucks ($1050). But each year, the amount you earn increases, until by the 10th year, it’s generated over $600—just by leaving it alone.