Factors for Retirees & Debt Payoff
Continuing to Work
For some retirees, maintaining some form of employment can help sustain their financial livelihood. This may mean transitioning to a part-time job. Others might also consider becoming an independent contractor offering expertise based on their career experiences. The bottom line is keeping a steady stream of income can chip away at outstanding loan balances close to and while in retirement.
Housing costs are typically the highest expense among a person's monthly bills. Unfortunately, mortgage payments may continue to follow you into retirement, all on top of annual insurance and property taxes. Deciding whether to ramp up home loan payments is a highly personal decision that could have potential tax implications. Having a discussion with a licensed financial consultant can help clients weigh the pros and cons, including whether speeding up payments is beneficial.
Paying Down Other Debt
Ideally, by the time a person is near retirement, car loans, credit card balances, and other debts are either paid off or close to it. If there's still a large amount of outstanding debt, creating a financial plan to minimize or eliminate those bills becomes a pressing priority.
These are just a few of the considerations that financial consultants examine in assisting clients with retirement and debt management goals. If you are close to retirement or have just retired but are seeking ways to pay off debt, let Evergreen Advisors help you establish realistic priorities. Call (513) 784-9150 to schedule a friendly, no-obligation consultation. Visit the website to learn more about their other financial planner services.
“This material is intended for informational purposes only and should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor.”