DEBT CAN RUIN YOUR RETIREMENT BUT IT DOESN’T HAVE TO
When people approaching retirement are asked about their biggest fears, debt consistently ranks near the top of the list. That’s with good reason. According to finance company Comet, roughly 80 percent of American adults have some amount of debt. Many Americans will retire with a mortgage, car payment, or some other form of financial obligation. Obviously, retiring debt-free is the best outcome, but it’s simply not realistic for many people. That said, a little planning can go a long way toward making debt manageable after your career is over. Ideally, paying down debt should begin while retirement is still far off on the horizon. High-cost consumer loans, like those on credit cards, should be the debts you tackle first. A good rule of thumb is to start with the debt that has the highest interest rate. The longer that debt sits, the more you pay in interest. Many of these debts are not tax-deductible, so there’s no point in waiting for the optimal time to pay them off.
mortgages are tax-deductible, you may be in for a significant rate decrease once you retire. While the best strategy for you may be different than your neighbor’s, there are a few principles that apply to all cases. You need to be sure that your payments during retirement will be manageable on your reduced income. You should also never cash in your 401(k) or other retirement accounts early to pay off your mortgage, because you’ll incur serious fees for an early withdrawal. As you transition into retirement, you should reevaluate your budget. The more expenses you can reduce, the longer your resources will last and the less stressful any outstanding debt will be. You should also set aside at least three months of emergency funds if possible so that you won’t need to use credit if something unplanned happens. Retiring without any debt may not be an option for you, but that shouldn’t stop you from proactively planning to decrease debt before you stop working. Like the proverbial monster under the bed, debt is a lot less scary when you’re willing to stare it straight in the face.
As you get nearer to retirement, you should take a look at your mortgage and be ready to do some math. Because
KEEP PRODUCTIVE MOMENTUM WHEN EMPLOYEES TAKE A SUMMER VACATION
How does your business keep up productive momentum when employees jet off for a week or two? Every summer, this is a question that businesses all over the country try to answer. It’s also a question that impacts businesses differently depending on staff size and organization. Some businesses have enough folks on hand at any given time that the absence of a single person isn’t a big deal. But during the summer, the dynamic can change when more employees decide to take time off, especially one after another.
encourages people to get time-off requests in early, leaving your team more time to plan for the absence.
Second, implement time-off request deadlines. When you know a lot of people are going to want to take a few weeks off during the summer, ask that they put in their requests as soon as possible. It allows everyone time to plan so any work is delegated accordingly. On top of that, remind your team to get the requests in before booking any travel arrangements. That way, no one has to play the bad guy when a time-off request gets denied and a hotel booking hangs in the balance.
When employees take time off, things are more likely to slip through the cracks and productivity can
Third, encourage taking vacation. Work-life balance is critical when you want a productive team. Sometimes you have to reiterate that vacations are important, as numerous studies have confirmed. Too often, employees don’t plan vacations because they don’t want to compromise their job in any way, or they feel guilty about leaving. But when people don’t take time off, that’s when productivity takes the biggest hit. The longer people work without taking time for themselves, the more likely they are to experience burnout.
take a hit. However, having well-defined vacation policies in place can prevent issues from developing in the first place. First, be clear about the time-off policy. If you have one department of six people, a reasonable expectation is that only two people from that department may be out at a time. The policy of “first come, first served,” is one of the best ways to approach this situation. It’s fair, and it
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