Needless to say, that there are such investment tips that are considered to be universal and timeless. But it should be also pointed out that due to that the markets have bottomed out in the recent financial crisis, people approaching retirement age in the next 3 to 5 years have to take into consideration their options and the viability of staying the course.

The truth is that money invested in the stock market now may not yield as much of a return in the next 5 years as it could being invested in other assets. Yes, it is true, as nowadays stock is cheap, and a lot of us will probably experience massive returns on equity bought in this period. But in the case you are going to retire in the next few years, you should consider if that applies to you.

Many people wonder whether they should continue funding their 401k. As a matter of fact, a lot of individuals who are approaching retirement age are nervous about continuing to fund their 401k accounts. It’s a normal concern according to the fact that anyone can predict when the stock market will hit bottom, and massive amounts of wealth have already been destroyed in the financial instability.

It goes without saying that this money is vital as it will fund your lifestyle throughout your retirement and putting it to good use should be a big priority.

It could be stated that contributing to your 401k is a good idea but only as far as your employer matches your contribution. The point is that it has always been believed that investing in equity is a better position than paying down debt with moderate interest, and that’s quite true. But the stock market has been changeable, and strong returns will not be guaranteed for the next few years. So, paying your debt NOW will keep you from having to pay it late when you will be retired already.

Keep in mind that your mortgage is the most obvious kind of debt to pay off before investing past your employer’s 401k match. It should be also added that your mortgage represents your commitment to your largest asset, your home, and it’s debt that you’ll want to have paid down before beginning retirement especially it concerns the situation if you can’t count on your 401k to provide you with adequate retirement income.

The other important thing for you to take into consideration is that avoiding debt service in retirement has always been an investment mantra, and it’s just as poignant in this investment environment. So, avoiding debt payment should be the key component of your retirement strategy.

The other natural question is where you should invest your retirement money in current uncertain times. It will be helpful for you to find out that one way to reduce your debt before retirement is to engage in an accelerated mortgage payoff plan. In fact, by paying your mortgage down early, you reduce the amount of total interest paid on the loan which can amount to tens of thousands of dollars in savings.

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