The Dirty Little Secret About Retirement
“You will never change your life until you change something you do daily. The secret of success is found in your daily routine.”
A run-up in housing wealth has left some homeowners reluctant to sell. It can be said that older Americans are a good barometer of the recent shift in the U.S. economy. They’re retiring with fewer assets, struggling with inflation, and living much longer. But that’s not all. More Americans are retiring with fewer assets, les cash flow, and more debt. Here’s the dirty little secret why many older Americans are carrying debt into retirement.
Why Are So Many Seniors in Debt?
Senior citizens can have many types of debt, including:
Credit card debt: Many older adults use credit cards to pay for medical bills, basic expenses, or other costs
Medical debt: Many older adults have medical bills that they are paying off over time
Student loan debt: Many older adults have student loans from their own education or from helping their children or grandchildren pay for school
Mortgage debt: Many older adults have mortgages
Auto loans: Many older adults have auto loans
Personal loans: Many older adults have personal loans
Inflation is caused by a number of factors:
Supply chain disruptions: The COVID-19 pandemic and Russia's invasion of Ukraine have caused supply chain issues that limit the supply of goods.
Rising commodity prices: Energy prices, such as gasoline, have increased.
Pent-up consumer demand: As economies recover from the pandemic, consumers are spending more.
Labor shortages: Labor shortages have made it harder to produce goods.
Increased production costs: The cost of raw materials and labor has increased.
Fiscal and monetary policies: Tax cuts and lower interest rates can increase inflation.
While we cannot stop inflation we can find a creative means to help curtail its impacts. Inflation is here and it is real. Now, what are you going to do to deal with it? What’s your plan?
Here are scenarios in which Cynthia has helped client’s add to their financial freedom despite inflation:
Added an additional “tax-free” monthly income source.
Eliminated mortgage payment, all credit card debts, and provided a line of credit to draw from in case of emergencies.
Removed the worry of ever having to sell or leave their forever home.
Downsized to a manageable new home with less maintenance.
