One of the best parts of getting up there in your age is that you have retirement to look forward to. Less time worrying about work and its obligations with more time to focus on your hobbies. You deserve it after dedicating yourself to the workforce, but you don’t want to worry about money while you’re trying to enjoy your retirement. Take these steps to get rid of debt before you retire to give you more money for the finer things in life and reduce stress levels about finances.
Not all debts are created equal. You want to reduce or completely eliminate your debts with the highest interest rates. Interest accumulates quickly and makes it take much longer to get a credit card or other installment loan paid off. Create a list of your monthly debts along with the interest rate. Focus on paying off the highest interest debts first or look into getting a balance transfer to a card with a lower or no interest rate.
Negotiate Interest Rates
If transferring or paying off balances isn’t feasible in your financial plan, consider calling the company and asking for an interest rate reduction. This can be hit or miss depending on who you talk to and the company, but if you’ve used the card responsibly with no later payments you might be lucky enough to get the rate reduced. This can add up to hundreds of dollars in savings over time.
Get “Free” Money
Take advantage of programs offered to help you save without being taxed, such as a 401k. Many employers also offer matching contributions to encourage you to save as much as you possibly can. The best option is to save at least the maximum percentage that your employer will match to get the most out of your contributions. You’ll have less stress to worry about, with more money saved for expenses you’ll incur while retired. Some seniors also sell their soon-to-expire life insurance policies for additional cash.
Push Back Your Retirement
This isn’t an ideal option since it requires you to work a bit longer, but the financial benefits for when you do retire can be enormous. Working longer allows you to build up more money in your retirement accounts, gives you longer to reduce debt and maximizes your social security payment since you don’t receive a penalty for early retirement.
Paying off debt is one of the key ways to ensure that your retirement is comfortable. Ensure that you have the time to enjoy your years without financial strain putting a damper on it.
Gary Chidsey is ready to help you plan for your retirement today. Call for an appointment at (330) 722-4444 or email email@example.com