24 April 2019

The Impact of Debt on Your Retirement

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By Michael Rambaldini

Director |Certified Financial Planner |Aged Care Professional

Debt management is a continuous process whether you are still in the planning stage for your retirement or already retired. It takes a lot of control, decision making and money smart ideas to manage debt and to ensure that your retirement is totally secured.

Even when you think you have already prepared the best retirement plan, there are unexpected events that happen in our lives that rock our foundations. These unexpected situations will test the capacity of your financial preparedness. Would you be ready for anything that could possibly happen? Adult children, sometimes with their families, move back to live with you. There are also cases where people are forced to retire earlier than planned because of health issues. Some are losing their jobs because of the changes happening within their employment and companies. This is why we always have to eliminate debt as soon as we can.

If you are spending away your money and piling up credit card debt, it won’t take long until you are faced with the decision whether or not you can still afford to be living in your home. This is a painful reality that many people have to deal with. In order to avoid this, maintain control of your spending habits and get a clear view of your priorities, your needs and wants.

Know your limits when helping other family members. Communicate with them about your limitations and that you are trying to manage your own finances for your future retirement plans. Although we always want to help our kids with their needs, it will not be helpful with your own financial goals.

Don’t hesitate to seek professional help when it comes to your retirement planning and financial situation. Connect with us at www.verante.com.au for more information

The author is an employee of Verante Financial Planning in Castle Hill, Corporate Authorised Representative of Magnitude Group Limited, Licence No 221557, Magnitude Group Limited ABN 54 086 266 202.