Millennials And Generation X, Your Estate Planning Lawyer Is Cheering You On As You Work Toward Zero Debt
Most people below the age of 55 don’t put much thought into estate planning, but the COVID-19 pandemic may have changed that. Even before the new variants emerged, the pandemic made young and middle-aged adults aware of our mortality. It also gave us plenty of time to think about what it is worthwhile to spend money on. If you used to spend all your extra money on travel, your travel plans were grounded for the better part of a year; the same goes for dining in restaurants with friends. If you were fortunate enough that your employer kept you on the payroll and assigned you to work remotely, there was nothing to do with all that extra time and money except pay down debts. The good news is that those debt repayment habits will serve you well as you build your estate plan. A Clearwater estate planning lawyer can help you make long-term plans that include a paid off home mortgage and a guaranteed income.
Being Debt Free Makes Retirees Feel Financially Secure, Regardless of Net Worth
When people say that money doesn’t buy happiness, what they really mean is that how much money you have does not directly correlate to how content you are with your financial situation and how little stress you feel about your finances. A study by the Retirement Security Research Center categorized retirees as affluent, comfortable, average, just getting by, or struggling. It did this by asking the retirees to rate their own financial situation; it did not measure their net worth or income level. Most of the retirees who considered themselves affluent or comfortable owned houses and had little or no mortgage debt. They also had guaranteed income, such as a pension or Social Security income.
The retirees who considered themselves struggling or just getting by tended to rent their homes. They also tended to owe money on credit card debt or medical bills. In other words, even if they had a guaranteed income, it went to expenses related to the past (old debts) or present (rent). This corroborates the frequently cited, however depressing, observation that the rich get richer and the poor get poorer, even in retirement. It also shows that the mortgage payments you are making now really are a worthwhile investment. Even when the restaurants and cruise ships reopen, keep putting your money toward debt repayment. You can always eat avocado toast at brunch with your buddies when you are retired, and show your brunch companions pictures of your grandchildren while the young generation snarks about how much grandparents like avocado toast.
Contact an Attorney Today for Help
Putting all your discretionary income toward paying off mortgages and other debts isn’t exactly fun, but spending it in retirement can be. An estate planning lawyer can help you envision the lifestyle you can have decades from now if you stay focused on your goal of becoming debt free. Contact William Rambaum for a consultation.