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Congratulations on your long and successful career. Sounds like you’re ready to retire. Let’s take a few minutes to look at your finances and make sure you’re really ready.
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House: One of the keys to happy retirement is to pay off the mortgage and not rent a house. If the mortgage is paid, you are eligible to talk about retirement. If your house is valuable but you haven’t paid off the loan, talk to your financial advisor about how to use some of your savings to pay the mortgage. In this way, you can invest a part of your money in addition to other investments to obtain real and guaranteed income, which will bring tangible and guaranteed income. You can also consider selling your house and using this money to buy a smaller house or condominium that you and your partner can afford. If the house is not worth a lot of money or is not worth money at all, or even you don’t have a house at all, you need to save a lot of money and consider buying a house to enjoy your old age.
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Credit card debt: If you want to retire, you cannot have credit card debt. If the credit card debt is too much to pay the savings, it indicates that you are not financially ready to retire.
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Pension: At best, your retirement savings are 10 to 15 times your income. This money, together with the social security fund, should ensure your smooth retirement. If you use your savings to pay off your mortgage and find that the balance is less than 10 times your income, you should consult your financial planner about how to prepare for retirement. If you don’t have much savings and want to live on social security, you should probably extend your working life (until you are well over 70 years old). Postponing retirement can increase your social security benefits, and you can retire more easily in the future. In addition, you can save some money for retirement. After paying off the house you bought, it is more feasible to retire only by social security.
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Savings for your children’s college education: Let’s assume that you have fulfilled your obligation to provide for your children’s college education. If you still have some money in your student aid savings account, maybe you can use it for your grandchildren to go to school.
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Car: After retirement, your car will not occupy an important economic position, but you should not carry a car loan. At the retirement stage, you should only take a one-way road to cultivate interest: you should learn from others; Cultivate interest without spending money.
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Retirement life is diverse, including those who commute to Hawaii beaches and golf courses, and those who live on government housing subsidies. The difference of economic level determines that some people can retire happily, while some elderly people are unhappy. Pay off all the debts before retirement, and you will be able to save trouble and maintain your life calmly under the premise of health.