Michael J Eugenio, CFP® was quoted in this article published by Investopedia today, September 15, 2017. The article by Jim Probasco is directed at baby boomers hitting the retirement circuit without enough money saved.
Among the Top 6 Expenses That Are Cutting into Retirement Savings, Mike’s quote was featured as the 2nd leading expense:
2. Credit Cards and Other Accounts
“The average household pays out $2,630 in credit card interest each year. The more you reduce this amount, the more you can put into your nest egg.
‘Never roll consumer debt into a home mortgage,’ cautions Michael J Eugenio, CFP®, president of Eugenio Financial, Lake Oswego, Ore. ‘While it might save money monthly, long term you have added an enormous amount of interest. That car payment that you had 30 payments left on, now just became a 30-year car payment.’
Instead, first ask for a credit card rate reduction. If that’s a no-go, look into a balance transfer to another card with a lower rate. Or, if you can pay off your credit card debt within a year or so, look for a card with a 0% APR for 12 to 18 months. The interest you paid can go into your retirement savings.”
Use a rate comparison tool such as this one by Bankrate. And don’t just do it once; check on a regular basis.”
For more on retirement planning by Michael Eugenio, you may find this article of interest: Managing Cash Flow in Retirement – Critical to Portfolio Planning
Eugenio Financial is a Fee-Only Independent Registered Investment Advisor, Michael Eugenio, is a Certified Financial Planner CFP™
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