11 Oct Money for retirement
A foundation of preparing for your retirement well-being is getting out of debt says Jane Bryant Quinn in the latest AARP Bulletin. Her other four “legs” to the retirement stool are Social Security, personal savings, health insurance, and realistic work goals.
Jane Bryant Quinn and I are singing a duet about money and retirement. At minimum, retirement planning requires that you not have debt to service; for a more secure retirement, you need to boost your savings with the money you are now paying on credit cards.
I am dismayed by the number of people who come to see a bankruptcy lawyer, drowning in debt, and professed to be “undecided” about whether to file bankruptcy. Almost without exception,these are people with no cash reserves to fix their car should it blow an engine next week, and nothing saved for retirement, yet they continue to pour money down the minimum payments rat hole.
It seems so obvious to me that if bankruptcy provides a legal way to eliminate your liability for debts you can never repay, take that option, put bad times and/or bad decisions behind you and make provision for an independent and solvent old age.
JBQ’s action items on this issue were
- Quit borrowing against your house
- Get rid of consumer debt
- Control your spending
- Help your children only as a last resort.
If you are young, healthy and employed, by all means pay off the debt as soon as you possibly can, and commence saving for retirement now.
If you can’t pay off the debt and save for retirement, consider bankruptcy.
Cathy Moran, Esq.
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