retirement

10 commandments of retirement planning

I. You shall get out of debt
Next
2 of 12
Back
I. You shall get out of debt

Certain types of debt are toxic to building wealth. High-interest credit card debt can fester in your finances and cost more than can possibly be regained through saving and investing. Still, if you have access to a retirement account at work, take advantage of it. (See Rule V.)

"If it's costing you a rate of interest and you're not getting a deduction for it, that would be the first order of business before you do any significant saving," says Brian Kuhn, Certified Financial Planner at Retirement Planning Services in Millersville, Md.

Mortgages and student loans score a pass due to the deductibility of the interest, but car loans and credit cards can sport interest rates well above yields on aggressive investments.

Pay off expensive debts and then accelerate retirement savings in earnest.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
Sponsor

Be An IRA Expert

Can I tap my IRA for a loan?

If you want to tap your individual retirement account for a loan, know the rules first.

CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jennie Phipps

Feds fight to thwart ID thieves

The IRS, Federal Trade Commission and Social Security Administration are taking steps to protect consumers from identity theft.  ... Read more

advertisement
Partner Center
advertisement

Connect with us