Debt Can Ruin Your Retirement,
BUT IT DOESN’T HAVE TO
Ideally, paying down debt should begin while retirement is still far on the horizon. High-cost consumer loans, like those associated with credit cards, should be the debts you tackle first. A good rule of thumb is to start paying off the debt with the highest interest rate. The longer that debt accumulates, the more you pay in interest. Many of these debts are not tax-deductible, and often impact your credit rating which, in itself, has financial ramifications for everything from insurance to loans and security clearances. As you near retirement, you should take a look at your mortgage and be ready to do some math. Because mortgages are tax- deductible, you may anticipate 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 in many cases. You need to be sure that your payments during retirement will be manageable on a reduced income. Never
cash in a 401(k) or other retirement account early to pay off your mortgage, because of the penalties incurred for early withdrawals. As you transition into retirement, you should re-evaluate 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 your monthly expenses in an emergency fund, if possible, so that you won’t need to use credit for emergencies. 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.
When people approaching retirement are asked about their biggest fears, debt consistently ranks near the top of the list. Good reason. According to finance company Comet, roughly 80 percent of American adults have some amount of debt. Many of us will retire with a mortgage, car payment, or some other form of financial obligation. Obviously, retiring debt-free is the best option, 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.
Train Your
BRAIN!
CHARRED CHILI-CHEESE CORN
Inspired by Bon Appetit magazine
INGREDIENTS
• 1/4 cup fresh lime juice • 2 ounces fresh cotija cheese (or feta), crumbled • 1/4 cup cilantro • Salt and pepper, to taste
• 4 ears of corn, husked • 4 tablespoons high-smoke-point oil, such as canola or vegetable • 1 large shallot, thinly sliced • 1/2 red chili (such as Fresno) or jalapeño, thinly sliced
DIRECTIONS
1. Heat grill to medium. 2. Brush corn with 2 tablespoons oil and grill until visibly charred, 10–12 minutes. 3. Cut kernels off cob and combine with shallots, chilis, lime juice, cheese, and remaining oil. 4. Season with salt and pepper, garnish with cilantro, and serve.
Published by The Newsletter Pro . www.NewsletterPro.com
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