"Dave Ramsey's goal is to help people achieve financial security, and he provides a lot of different advice that you can apply throughout your life in order to make that happen. While Ramsey is pretty focused on helping people pay off debt early in life, he also has some harsh warnings to share about retirement mistakes that far too many people make."
"On The Ramsey Solutions show, Ramsey explained that you can invest just a small amount each month in a growth stock mutual fund to end up a millionaire. However, he cautioned that there is one big problem that could derail your efforts to both end up wealthy and to live off your savings as a retiree. "You can't have a $750 F-150 payment," he warned. "You can't have a student loan that's been around so long you think it's a pet.""
Investing small, regular amounts in a growth stock mutual fund can compound into substantial retirement wealth, but carrying significant debt can derail those gains. High recurring obligations such as large car payments or long-standing student loans reduce the money available to invest and increase the income required in retirement. Entering retirement with unpaid debts forces retirees to divert savings to payments and undermines financial security. Eliminating debt before retirement preserves cash flow for investing and living expenses. A systematic payoff plan that targets the smallest balances first and applies extra payments until each debt is cleared restores capacity to save for retirement.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]