A Life Without Debt: Building the Retirement Nest Egg

Debt free living has one important benefit that many people don’t consider at first. Sure, it makes bill paying easier and it lets you save for vacations and other fun things, but it also lets you save big sums for retirement. When all of your money goes to servicing debt, not only can you not pay for things like vacations, new appliances, or cars, you also can’t save for retirement. Or, if you can squeeze out a little for retirement, it’s probably not enough to meet your future needs.

Many people have no idea how much money they’ll really need to retire in the way that they dream about. Maybe they’ve run a calculator or two, but chances are they haven’t

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8 Responses to A Life Without Debt: Building the Retirement Nest Egg

  1. Sherry says:

    It is so great that you are so young and have such a good life plan. My favorite line is: “..So they continue to finance large and small purchases, living only for today and heedless of the distant future.” That does seem to be at the root of the problem.

    Congratulations.

  2. Jay Gatsby says:

    Solid advice. Too bad most people won’t listen.

  3. Broken Arrow says:

    Good article! It’s what I’ve been harping on all along myself. Anyway, congrats for reaching your goal so early!

  4. Richmonder says:

    Also, one should consider paying off the home mortgage eary. It will give you a great peace of mind. The tax benefit of having a mortgage is a gimmick for working folks9unless you are in high tax bracket). especially when your rate is above 5% and you can not earn that much in any safe investment.

    My two cents…

    Good article.

  5. Yes being debt free is the best way forward for a good retirement. A lot of us make the mistakes of gaining unnecessary wants instead of planning towards having a good time during the retirement years. Thanks for sharing your article.

  6. Steven says:

    Wonderful advice.

    Every year, social security will send you a statement of earnings showing how much money you have made to date in your lifetime.

    I noticed when I was 45, I had more money invested in my IRA, 401K, and my brokerage account, than I had made working for a paycheck.

    I retired in 2005, at age 57, debt free and financially comfortable.

  7. Foxie | CarsxGirl says:

    I understand saving for retirement… I have a Roth IRA and a 401(k), at 21. But right now, considering all of what I want to do when I’m young… I can’t save all that much. Total, I’ve got roughly $1.5k stashed away in both, but I have no clue whether it’s a good thing or not. (Too little? Or good enough because I’m a bit ahead of the curve?)

    I appreciate saving for the future, but I want to have some semblance of a life now… Yeah, I could retire a millionaire, but I don’t want to do it making myself miserable. I’m hoping that graduating from college and getting a better job help me out. Right now, I don’t make enough money to do all of what I want to do, and retirement’s the one thing that I don’t want to put off saving for, but it’s on the chopping block for sure.

  8. ProfBill says:

    We will Social Security into the far future. But, it will probably provide a smaller portion of your living expenses than now. There are many ways to fix it. One example – right now we have a low income cap for which Soc. Sec. is taken. Why cant those hedge fund managers making billions, pay soc. sec. tax on all of it? His kid will attend Harvard and mine ends up in ┬┤stan in the Army. How is soc. sec. tax on only the first hundred thousand or so, fair?

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