Transamerica Center, Cnbc, Ten Years discussed on Money Talk
It was everybody's goal to work in the same job or for the same company their entire life to get a mortgage and have it paid off. And all of your other debts paid off by the time you retire. That was part of the American dream owning a home paying it off by the time you retire. And then being able to live on a whole lot less than you would have before retirement and then interest rates dropped zero. And people started to say over the last ten years, you know, is it really crucial that you be debt free at any point or especially going into retirement, isn't it, okay? To carry some dead into retirement. If interest rates are so low, and now, I think you see the one of the issues is that interest rates aren't as low as they were ten years ago. They're climbing worried about two and a half percent. Which is I said at the beginning of the program is not not high by any stretch. But it's probably safe to assume that interest rates are going to continue to go up at least a little and maybe a lot. If the economy. Continues to you know, to to perk along here. So now, we have this issue. We do it's just keep coming back to it. And we say is it important or how important is it to have all your debts paid off by the time you stop working? Interesting article CNBC dot com on December eighteenth. That quotes a new report from the TransAmerica center for retirement studies. And I've read this report, it's excellent. There's a lot of good information in it. And this report from TransAmerica center for retirement study says that four in ten retirees these are people have already stopped working say paying off debt. Is one of their top current financial priorities. So the retirees certainly think a lot of them do that. It's right at the top of the list, it's their top priority to get out of debt. There are a lot of them who regret having debts going into retirement. And there are other people who say, oh, I've always had a mortgage. I'll always have a mortgage. I'm okay with that. And that's fine to know judgments here interest rates are low. If you've got a, you know, a mortgage thirty year blocked in two and a half three percent. It's kind of hard to argue. For taking money out of investments that have probably earned more than that. To pay those off but as a worthwhile goal. I think it's still there. And there's other things in.