Saving for retirement while you’re paying down debt can be tough for some people to pull off. If you’re living paycheck to paycheck and don’t have much cash to spare, then retirement saving may seem out of reach.Retirement should be a time to kick back and relax, whether that means traveling the world or staying at home to play with the grandkids. Prioritizing retirement savings is essential to stave off a financial calamity, as living off Social Security alone is difficult or impossible.
Key Takeaways:
- Even if high interest debt is an ongoing concern, it is wise to fuel your 401{k} with the minimum amount needed to ensure employer match options are met.
- When choosing which debt to prioritize for paying off first, choose the higher interest debt items first.
- Although large, mortgage debts are usually not as harmful as high interest credit card debt.
“Saving for retirement should typically be your primary financial goal, unless you’re saddled with thousands of dollars in high-interest debt that’s racking up interest by the day. If that’s the case, pay off your most expensive debt as quickly as you can, then devote the rest of your savings toward retirement.”
Read more: https://www.fool.com/retirement/2019/06/08/saving-for-retirement-vs-paying-off-debt-which-sho.aspx
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