If you are like most people, you have been daydreaming about your retirement years for a long time. Even if you have always enjoyed your work it is time-consuming and your dedication to your career can reduce the opportunities that you have to travel and engage in leisure and recreational activities. Retirement lies in wait like the pot of gold at the end of the rainbow, an interim when all of your time is your own when you can do all the things that you never got around to doing while you were working.
Creating a retirement to-do list in your mind’s eye is fun, but you also have to be proactive about making financial plans for the future. Unfortunately a lot of people procrastinate in this regard until it is too late. A recently conducted AP-LifeGoesStrong.com poll found that 44% of the baby boomers who responded said that they were not comfortable that they would be able to retire with a sense of financial security. About one quarter of the respondents said that they would never have the financial resources to retire.
Your first thought when it comes to feathering your nest for retirement may be to accumulate a significant nest egg. This is indeed important, but you would also do well to consider addition by subtraction. Debt reduction can be an important part of retirement planning as well.
This can be done in a number of ways. If you find that you are in a financial position to do so, you may want to focus on paying your mortgage off as quickly as you possibly can. Instead of buying that new car, why not hang onto the one that’s paid for as long as you can? Credit card bills can consume a lot of your retirement income, so it would be a good idea to extinguish this debt before you retire.
Debt reduction is a useful component to a comprehensive retirement plan. If you would like to map out a holistic strategy for success, simply pick up the phone and make an appointment to speak with an experienced retirement planning attorney.