Plan for a Debt Free Retirement
In 2010 36% of retirees had debt – in 2012 this number increased dramatically to 59%. With 59% of retirees having debt its colliding with their retirement plans.
Goals can be put in place to counteract this trend so when we retire we have the money required to enjoy a comfortable lifestyle. We need to start by looking at our household as a family business and create a profit. In order to do this we need to change our behaviour.
In 2012 this number increased dramatically to 59%
Having a cash flow plan now whereby we pay down debts yet have choices that are not as restrictive as a budget. A cash flow is what is needed in order to enjoy the things we want as well as eliminating debt upon retirement. We should not owe more than 3 times our annual salary in debt.
We should not owe more than 3 times our annual salary in debt
Therefore, unifying debts and not having a lot of credit owing will help us stay focused and in control of where our money is being spent.
As an example, having a mortgage, credit line, one or two car payments depending on household, multiple credit cards and some with high interest rates can be too much to pay down in time for retirement.
Our credit cards should be paid off each month but if not it shouldn’t be more than 70% of the credit limit. We should not apply for credit too often as it affects a good or excellent credit score we should be working towards. Behaviours of of carrying too much debt can be changed now to reach our goals for the retirement years.
Products or services related to investments, investment recommendations, financial planning, retirement planning, and investment reviews are provided through our mutual fund dealer Security Financial Services and Investment Corp.
4665 Yonge Street, Suite 309, Toronto, ON M2N 0B4 t 416.964.0440