Ask the experts: Should my credit card debt be retired, too?
News from Sacramento Bee:

Should I pay off credit cards before retirement? Where should I invest my IRA money? What are some go-to websites for financial beginners?

This week, those personal finance questions get answered by Walt Romatowski, a certified financial planner in Roseville, who’s one of our “Ask the Experts” writers.

I owe $ 40,000 in credit card debt (on eight cards). I am going to retire this year and have $ 40,000 after taxes in my savings account from work. Should I take this money and pay off my credit card debt?

You did not mention if you have adequate retirement savings and/or a pension that will provide for your normal spending during retirement, or if you have a mortgage or any other kind of debt.

Assuming that you do have adequate resources to cover your monthly expenses, it does make sense to pay off your credit cards, so that you can enter your retirement years with little or no debt.

You don’t need eight credit cards, but you should hold on to one or two major credit cards to cover life’s inevitable unexpected expenses and to maintain your credit rating.

Try to pay for most things with cash. When that’s not possible, make it a habit to pay off your credit card balances each month, so that your debt does not build up again.

Where do you recommend a retiree invest a Roth IRA?<…………… continues on Sacramento Bee

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Related News:

Younger Americans might die with credit-card debt
News from Columbus Dispatch:

By  Theodore Decker

The Columbus Dispatch Tuesday January 15, 2013 6:53 AM

That Chanel handbag might be to die for, and perhaps you truly couldn’t have lived without that all-inclusive trip to Cancun.

But the credit-card debt that those purchases helped to build could be following you to the grave.

Ohio State University researchers say younger Americans appear to be taking on more credit-card debt than the generations before them and are proving to be slower in paying it off.

“If what we found continues to hold true, we may have more elderly people with substantial financial problems in the future,” said Lucia Dunn, an OSU professor of economics. “Our projections are that the typical credit-card holder among younger Americans who keeps a balance will die still in debt to credit-card companies.”

The study, written by Dunn and Sarah Jiang of Capital One Financial in McLean, Va., used data from monthly surveys to look not only at the amount of debt that consumers carried but also at the speed at which they paid it off. They wanted to determine how d…………… continues on Columbus Dispatch

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