Today I’d like to continue with this video series, which is “Ten Financial Commandments for Retirees.”
And Commandment # 2 is Pay off debt: Debt can be a useful tool in many aspects of life, like buying a home, affording a car, or growing your business. As long as a person acts responsibly and has a long runway to pay back that loan, it can enhance their life or take their career to the next level. However, as folks enter their retirement years, many shift to living on a fixed income. Being saddled with debt, and its associated extra expenses, can be burdensome and make retirement life much more stressful. That is why I advise all retirees to eliminate all debt before retirement. This obviously includes credit card debt, business loans, and even a mortgage. And if you are still paying off student debt at this stage of life…now is the time to pay it down completely so you can enter your golden years with a clean financial slate.