Depending on your unique situation the possibility of living a relaxing, uncomplicated life during retirement may hold a great deal of appeal. Keeping it simple can result in a stress-free lifestyle that keeps you happy, healthy, and in good spirits during your golden years.
Along these lines you may want to consider making a concerted effort to enter into retirement debt-free. We often talk about saving up a nest egg for retirement, and this is of course an important part of any intelligently conceived retirement plan. But at the same time, retiring debt before you retire from your job is what we call good old-fashioned addition by subtraction.
You have to be aware of the fact that you may be paying more interest on your debt than you are earning on your savings. If you do the math you may well find that paying off your mortgage early while you erase your credit card balances and pay off your motor vehicle loans is the best thing that you can do with your extra money in anticipation of retirement.
Additionally, you may want to take pause before taking on a significant debt that is unnecessary, such as purchasing a new car when your vehicle is paid for and in perfectly good condition. If you think about those potential car payments just accumulating in your own pocket for five years you can get a mental picture of what you can do with it once all of your time becomes your own.
Cogent advance planning is essential for serious minded individuals who sincerely want to make the most out of their retirement years. If you’re ready to get started, right now would be a good time to pick up the phone to arrange for a consultation with a good Central New Jersey retirement planning attorney.
Alan Augulis, Estate Planning Attorney
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