Comments on: How (and why) to retire debt free https://intentionalretirement.com/2011/07/how-and-why-to-retire-debt-free/ Life is short. Be intentional. Tue, 28 Sep 2021 00:08:53 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: How to manage your finances during a crisis - intentionalretirement.com https://intentionalretirement.com/2011/07/how-and-why-to-retire-debt-free/#comment-9095 Tue, 28 Sep 2021 00:08:53 +0000 http://intentionalretirement.com/?p=352#comment-9095 […] less debt you have, the more financially resilient you’ll be.  Make a plan to gradually eliminate your debt and you will greatly increase your odds of weathering a financial […]

]]> By: Your biggest retirement expense (and how to get rid of it) - Intentional Retirement https://intentionalretirement.com/2011/07/how-and-why-to-retire-debt-free/#comment-65 Tue, 07 Oct 2014 12:34:09 +0000 http://intentionalretirement.com/?p=352#comment-65 […] no longer be paying principal and interest on a loan.  Here’s a post that will walk you through how and why to retire debt free.  And if you want to play around with different payoff scenarios and run some amortization […]

]]> By: Why retirement will be cheaper than you think. | Intentional RetirementIntentional Retirement https://intentionalretirement.com/2011/07/how-and-why-to-retire-debt-free/#comment-64 Fri, 14 Mar 2014 15:07:52 +0000 http://intentionalretirement.com/?p=352#comment-64 […] rid of?  I’m guessing the amount is significant.  If you’re able to pay off your house and retire debt free, you could eliminate even more.  To be fair, you’ll also have some expenses that get added to […]

]]> By: Joe Hearn https://intentionalretirement.com/2011/07/how-and-why-to-retire-debt-free/#comment-63 Mon, 30 Sep 2013 15:09:12 +0000 http://intentionalretirement.com/?p=352#comment-63 In reply to Dan.

Hi Dan. I agree. The reason I used the assumptions I did in the article is that many people who use debt use it as an ongoing part of their planning. Ideally, the house gets paid off, but in reality, a lot of baby boomers (believe me, I’ve seen it) have used the low interest rates as an opportunity to refinance their mortgages (often taking money out) and/or buy a second home. If you’re in your 60s and you have a 20 or 30 year mortgage, I think it makes sense to have a nest egg that can support those payments. If you’re in your 60s and you have a 5 to 10 year mortgage, then, as you indicated, you can set aside only what is needed to retire the debt. Thanks for you thoughts.

Joe

]]> By: Dan https://intentionalretirement.com/2011/07/how-and-why-to-retire-debt-free/#comment-62 Fri, 27 Sep 2013 14:06:01 +0000 http://intentionalretirement.com/?p=352#comment-62 Your example above assumes that the first person would be paying their mortgage and car payment throughout the whole of their retirement years. However, both debts would be paid off at some point, at which point the retirement savings would be putting off additional money that is not needed, ie. it would be more savings than was needed at the time of retirement.

Of course you could argue that they may keep getting new mortgages on new houses and/or keep replacing current cars with new cars, thereby always having those payments. But then they would be choosing to live a “better” (read more expensive) retirement lifestyle than your more frugal couple.

Don’t get me wrong, I agree that it is wise to enter retirement debt free, it just isn’t as clear cut as your scenario.

Dan

]]> By: 10 resolutions that will keep you on track for a secure retirement | Intentional Retirement https://intentionalretirement.com/2011/07/how-and-why-to-retire-debt-free/#comment-61 Wed, 28 Dec 2011 16:42:19 +0000 http://intentionalretirement.com/?p=352#comment-61 […] Create a debt payoff plan—Set a goal to enter retirement debt free.  Read this article for help in putting together a […]

]]> By: Three key retirement mistakes to avoid | Intentional Retirement https://intentionalretirement.com/2011/07/how-and-why-to-retire-debt-free/#comment-60 Fri, 07 Oct 2011 15:23:55 +0000 http://intentionalretirement.com/?p=352#comment-60 […] written about debt here before, but it bears repeating.  Too many have gotten caught up in the debt frenzy and now, as […]

]]> By: How the U.S. debt downgrade will affect your retirement (and what to do about it). | Intentional Retirement https://intentionalretirement.com/2011/07/how-and-why-to-retire-debt-free/#comment-59 Tue, 09 Aug 2011 14:11:59 +0000 http://intentionalretirement.com/?p=352#comment-59 […] That’s bad news if you’re a borrower (think higher mortgage rates), but good news if you’re a lender (think higher dividends on your bond portfolio).  Interest rates are at generational lows.  Consider the downgrade the canary in the coal mine that they’re eventually going higher.  To minimize risk and increase cash flow in retirement, set a goal to retire debt free.  […]

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