Why You Must Be Debt-Free Before Retirement

You must be debt free before retirement. Everything should be paid off, including your house, car, credit cards, school loans, personal loans, medical bills.

Why? Because you do not want those extra payments when you start living off your savings.

The key to a great retirement is to get your finances organized early, then create and follow a personal budget. Captial Budget Strategies, LLC, Austin’s best Money Coach, is here to help.

For only $149, our Austin Money Coach will help you determine your true net worth, find out how much you actually have saved for retirement, estimate how much you will need to retire, create a personal budget and set up a Snowball Debt Repayment Plan.

Here is a simplified example that will highlight how debt in retirement will weigh you down. Suppose you currently have a monthly budget that includes:

MORTGAGE: $1,5000, FOOD: $500, CAR PAYMENTS: $650, SCHOOL LOANS: $400, 401(k): $250, CELL PHONE: $200 = TOTAL MONTHLY EXPENSE: $3,500

Once you retire, what monthly payments will change? Well, if all your debts are paid off, you will not have a mortgage, car payments or school loans. You will also not need to invest in a 401(k) anymore, because you will be retired.

So, without debt in retirement, you will only need to pay for food and cell phone. Total monthly expense: $700

If you still have a mortgage, you will need $2,200 a month

If you still have a mortgage and a car payment, you will need $2,850 a month.

Think about it. When you are 75 years old and sitting on your front porch reading your AARP magazine (on Kindle), would you rather have to come up with $700 or $2,850 a month?

I am sure you can do something with that $2,150 “extra” you will have being debt free. Maybe travel or buy “Keep Off the Grass” signs for the neighbors’ kids!

For only $149, Captial Budget Strategies, LLC, Austin’s best Money Coach, will sit down with you at your office, your home or any public location. We can meet during the week, in the evening or even on weekends.

Give us approximately 4 hours and we will help you Win Your Retirement!