There are some factors you need to take into consideration and some questions that wouldn’t hurt if you asked them.

-Would you be happy with the new ownership you have acquired? You know you will have certain responsibilities like mowing the lawn and bathroom upkeep. You may also have to paint depending on whether or not you already like the style. Some of these chores are daily, weekly, monthly, or even yearly

-Are you going to live in the house for more than five years? If not then it would be best if you didn’t purchase a house. You won’t gain anything living there for less than five years

-Can you afford to pay for large mortgages? It’s cheaper to rent a house when you add in taxes, insurance, and other fees

-Do you even have the time to maintain and clean your house?

-Do you wish to develop the house and maintain it for many years?

-Do you have a large family whose needs won’t be met living in say, an apartment building

-Do you need a house to feel complete and have a sense of fulfillment?

Spending the time it requires to think about the questions above is extremely important as this is a life decision just as important as maybe deciding to have children. Don’t forget though that the answers to these questions could change depending on which direction your life goes, so check back then and maybe you will be better suited to house ownership.

You must also keep in mind that the lowest premium is not always the cheapest and what your insurance covers is as important as what you end up paying up front. The plan which is cheapest is usually the one with the best benefits for the price that you are likely to be using. Remember that even big coverage can have certain loopholes. For example, you may receive coverage for hospital and doctor visits, however benefits related to dental care, prescription medication, and mental health are strictly optional and are not inclusive.

Typically, you will find yourself paying more if you demand greater flexibility in either co-payments or premiums. Comprehensive health insurance coverage usually allows you to use a network of hospitals which are specified along with a list of doctors, labs, and additional providers.

If suddenly you end up losing your job, you are protected by state and federal regulations from losing your health insurance coverage because of that reason. However, protection like this is not offered much from high premium costs. If you are married, you have to take into consideration what would make more sense – to have one insurance provider or both, and keep in mind that if you have children you need to think about who will be the health insurance provider for them as well. Visit CNN Money for more information on this topic.

Some of the other top things you should know about 401k is the federal limit on annual pre-tax contributions continues to rise. If you feel that you cannot afford to max out your 401k, you can make a contribution which is just enough to get ‘free money’. A typical contribution is about 50 cents on the dollar, up to 6% of salary you are getting. Before retirement, taking out of your 401k plan can be quite expensive. For example, if you are of age 59 ½ and decide to withdraw some money out, you will have to pay income taxes and an additional penalty of 10%. Therefore this is not a good solution.

When you are ready to setup a 401k account, you should do the math and figure out what your combination of bonds and stocks should be. This decision is primarily based on risk tolerance and the time period until retirement. You should also keep your choices simple when investing especially when you’re limited to the 401(k) your employer chooses.
So what happens with your 401k when you change jobs?

Usually, there are 3 options when switching jobs:

1.    You can leave the 401k money and not move it at all.
2.    Move it over to an IRA or another different 401(k)
3.    Cash Out

Lets say for example, you have less then $5,000 in your 401k account. Your employer might suggest that you take your cash out of your account in that situation, however you must know that cashing out is almost like shooting yourself in the foot finance-wise. Small accounts do have the potential to grow over a period of time. Your best option might be to just roll the $ out into another type of retirement account. When rolling money into a 401(k) or an IRA, you must make it payable to “trustee-to-trustee” to avoid the risks of penalties in case the execution of the rollover fails.

Know the rules

You should find out all the rules from your employer if there are any that exist. If no rules are present, your money can be left alone until you are of age 70 ½. This is the age when Uncle Sam suggests that all retired individuals start withdrawing Monday from their 401k and IRA plans.