How about a simple, no frills (sorry, no fancy dinner at Flemings) goal for retirement? Here is mine – (1) Own your home free and clear; (2) Have $-0- debt; and (3) have some $$$ in Savings/Retirement. Do this – and when you’re no longer able or willing to work, assuming you have social security income – you will be assured of having ample cash flow to cover your expenses and be comfortable in your retirement.
This goal is easy to say – and readily accomplishable – but it is not a slam dunk. You need to grasp certain concepts early on. First – if you are working for “cash” – not declaring your income and not paying any money to social security – you must remember that you will not have social security income in retirement. In that case – the third component of my plan changes because you will then need “significant savings” when you retire – because there will be no income.
To me – this issue alone makes it a “no-brainer” that working for cash, not paying your taxes and self-employment taxes (which is your contribution to social security) is a critical mistake – not to mention, as Social Security Disability Expert Jeff Kirchner often points out – you will have the ability to obtain Social Security Disability Benefits if you become disabled.
Two more critical points. Do NOT refinance your home. If possible, pay extra on the principal payments to pay the home off faster than your scheduled mortgage term – but whatever you do – forget about refinancing. Pretend it is one of those items you learned from Mom and Dad when you were 5 years old – the kind of rule that is ingrained and never questioned. The reason is once you get on the refinance train – your debt keeps rolling up – and changing form in a never-ending mortgage on your home.
Last – you must make a commitment that says, “I will not pay interest on credit card debt.” This is an essential component to success and you need to commit NOW! If you have credit card debt now – meeting the commitment means you have to stop paying the credit card debt on a month to month basis and get rid of it. I know – you can’t snap your fingers and make it vanish, but there are smart options on how you accomplish this. You can pay off the cards, do debt resolution to settle the obligations for less or use the bankruptcy laws to eliminate the debt.
Which one should you select? The answer is you need to learn how each one works to figure out the smartest play. My rule is – the one that eliminates the debt the fastest way at the least possible cost – is the optimal solution. Your assets, your job, and your income – when analyzed – will tell you the smartest way to accomplish the goal. This is what we do at THAV GROSS.
You can come in anytime for a FREE CONSULT – or learn the options at our next FREE, FUN Seminar on June 6, 2018. Information is below.
Say the words and live by them, “I will no longer pay interest on credit card debt.”
Have a great week.
P.S. Oh, I forgot to tell you. The menu choice at the Seminar. FREE cookies and water – it’s not about the food – it’s about your future!