When you are making preparations for the latter portion of your life, obtaining financial flexibility is critical. Planning to reduce your debt and stay invested is an important component of attaining this flexibility. Depending on how your health holds up and whether or not you need long-term care at some point, you may face widely varying expenses. Being prepared to comfortably handle these eventualities is what long-term planning is all about.
Obviously, saving money for the future is a big part of any long-term plan for aging. But at the same time, reducing your expenses could have a significant impact. Since you must pay interest on your debts, retiring them can provide a larger net gain than earning lesser interest on savings depending on your circumstances.
Small steps taken consistently over a long period of time can make quite a difference. For example, by making additional mortgage payments above the required amount, you could pay off your loan well in advance — this is particularly attractive for many people who would otherwise leave the cash sitting in a checking account or low-interest CDs. This could have a significant impact on your financial flexibility during your retirement years and the twilight years that will follow. In addition to managing debt, though, most people need to actively grow their money through prudent investment so they don’t lose money from inflation and taxes.
Intelligent long-term planning involves putting together a plan to save and stay invested for the future while reducing the burden of debt. The best way to create a framework that enables you to reach your goals is to devise a plan with the assistance of a licensed and experienced Charlotte elder law attorney.