Most people do whatever they can to protect their possessions from being stolen. We put locks on our doors, install security systems, or buy a dog. Increasingly, people are also starting to wise-up to the dangers of identity theft and cyber-invasion. But while our homes might be safe. and our computers and personal information looked after, there's something else we have that's in more danger than ever before: our retirement. And we ourselves are stealing from it.
How do we steal from our own retirement? By getting into debt. Think of it like trying to sail in a leaky boat. No matter how much water you bail out of the boat, it will continue to sink. The same is true of retirement. Debt eats away at everything. If it gets too large, even daily living expenses can be hard to meet. So you can forget about seeing the world, or setting up a college fund for your grandkids. And that's assuming you don't have any medical expenses to worry about.
Debt can become so cancerous that some people have to go even further into debt just to pay their living expenses, mainly by using credit cards. In fact, it's estimated that one-third of seniors use credit cards for this very purpose. Others have to keep working for years after they planned to retire.
Mortgage Debt: 45% of homeowners over the age of 62 had mortgage debt as of 2010.
Credit Card Debt: 7% of bankruptcy filings are by people over 65 as of 2010.
Children's Debt: As of 2010, 2.2 million student loan borrowers were age 60 or older.
As you can see, debt is a thief that loves to prey on people who have retired, or are nearing retirement. If you have managed to remain debt-free, or if you have your debt under control, congratulations! But if you have any debt issues that need to be settled before retirement, and would like to help on how to eliminate, please give me a call. We can discuss a debt-reduction plan that's right for you. We can also get over the various ways to secure income after you stop working, so that even if you do have some debt, you can still cover your expenses and stay retired.
Your retirement is as important a possession as your home, you car, or anything else. Protect it like you do your other treasures in life, and stay out of debt. Please feel free to give me a call at (330)-666-8131 if you have any questions.