Make a decision regarding your mortgage
It was a common trend sometime in the past for workers to do whatever was necessary to enter retirement without any debts. Getting rid of your mortgage before retirement is a major financial achievement but nowadays, it’s a little harder than it used to be.
According to Stacy Johnson, Money Talks News founder, many people might find it more appealing and profitable to put their money and let it grow in a tax-deferred retirement account instead of paying off their mortgages earlier. Their option has a lot to do with taxes.
On the other hand, owning your home and not paying a single dime for it in retirement can have a great psychological impact on your life, not only a financial one. Therefore, if you can, avoid carrying mortgage debt in retirement.
RELATED: 11 Major Costs That Will Most Likely Plunge When You Retire
Focus on paying off debt
Living on a fixed budget in retirement might not be that easy, what with all the interest payments on debt taking a big chunk of it. That’s why it’s essential that you get rid of nonmortgage debts, from credit card balances to auto loans and the like, while you’re in your peak earning years.
If you can’t seem to be able to pay off your loan balances on your own, there’s nothing in asking for help. Consider taking out a personal loan for debt consolidation to lower your overall interest rates and pay off multiple loans in a single payment. Also, check out these 10 Retirement Financial Milestones You Need to Achieve by Age 50.
