The Elder and Disability Law Firm, APC
Debt Reduction Can Free Up Retirement Resources
A lot of people are under the impression that they have nothing to worry about because they will be receiving Social Security while Medicare takes care of their medical expenses. However, Social Security in and of itself is going to provide limited income, and there are out-of-pocket expenses to address even if you are eligible for Medicare coverage.
So, the more money that you can put away for your retirement years the better. However, it is also important to consider the value of debt reduction.
The fact is that a lot of people do enter into retirement with a considerable amount of debt. This can be stifling and reduce your ability to enjoy your free time.
If you were to add some money to your mortgage payment every month and ultimately pay off your mortgage early you would be removing a large monthly expense from your ledger. Depending on the rate of interest that you are paying this may be a more cost-effective option than putting that money into a savings account.
Paying off your credit cards is another thing to consider, and driving a car that is paid for but in good condition may be a better choice than getting into a car payment.
Debt reduction can be an important component to a long-term retirement plan. If you are interested in discussing a comprehensive plan for aging with an expert, take action right now to arrange for a consultation with a licensed and experienced San Bernardino retirement planning lawyer.