Now that the kids are gone you're probably focusing on getting your home paid off before retirement. Of course, there will probably be other debts for many years such as car payments, etc. Before you get too excited, make sure that you understand all the ramifications of paying off your mortgage as quickly as possible. You are still going to have some major capital purchases in retirement and you need to know that it's how you pay for these things that will make the biggest difference in your retirement lifestyle.
By definition, it is not possible for you know what you don't know. And to add to the problem, everything you know, you think is the truth. Unfortunately, there are a lot of people and industries that profit handsomely from our ignorance. It is imperative that you learn the truth if you want to have a successful retirement.
How you pay for your home and other major capital purchases could be the most impactful financial decision you'll ever make.
It's the swing that matters.
By this point in your life you're probably thinking that taxes are one of your biggest enemies. You're finally earning more money but now many of your deductions - your kids and your mortgage - may be gone or nearly gone. You may be tempted to do anything you can to reduce your tax bill today, but be careful.
With a declining workforce and an aging population, the government's own accountability office admits taxes in the future will have to double in order for government programs to survive.
Make sure your right pocket knows what your left pocket is doing.
Would you cash that check?
Compounding interest in a taxable investment account creates an increasing tax.
You probably have not given a lot of thought to this until lately, but this will continue to present many challenges to you throughout your lifetime. It seems confusing. You hear that inflation is low but to fill your grocery cart it costs 2-3 times what it did a decade ago. Something doesn't seem right.
Assets earmarked for retirement in money market accounts, checking accounts, savings accounts, or even CDs can be greatly impacted by inflation.
One issue that few are talking about but could be one of the biggest challenges to your financial future if you're not prepared is the changing demographics that are occurring right now and will continue unabated.