Most financial advisors tend to focus on how much you need to save. But it’s equally important to cut your debt load as retirement approaches–especially your credit cards and mortgage. Unfortunately, pre-retirees today are carrying unprecedented levels of debt, which could become a big problem for them when they’re ready to stop working. So, anyone [...] [...more]
Debt reduction is a critical strategy for building retirement security, and credit cards should be enemy number one in your battle plan, with mortgages running a close second. In retirement, you’ll likely be on a fixed income and face pressure to keep pace with rising costs, and debt-related interest expense just adds to the challenge. [...] [...more]
In phase one of the foreclosure crisis, policy-makers and news media have focused mainly on homeowners who lose their homes because they can’t afford to make mortgage payments. The next big issue is “strategic default”–homeowners who can afford their payments, but walk away from mortgages and accept foreclosure because they’re facing financial stress, and their [...] [...more]
In a recent column on paying off your mortgage to boost cash flow in retirement, I mentioned the option of selling a home and buying something in a less expensive part of the country. Reader Nick Radesca wrote to point out another good idea–sell your home and rent a place to live. This can make [...] [...more]
Should you carry a mortgage into retirement? Before the economic crash last year, financial planners advised many pre-retirement and retired investors to invest any free cash in stocks, rather than pay down a mortgage. But the new economy has ushered in much more conservative attitudes about retirement planning–especially indebtedness. Many planners now advise clients to [...] [...more]
