|Image courtesy of Stuart Miles |
I read this article this morning and wish I could improve upon it ... but I can't: "Bankruptcy is an excellent retirement strategy" written by
"Just look at the math:
Let’s say you’re about 10 years away from retirement, and you owe $25,000 in credit card debt at a typical 18.9% interest. Based upon your budget, you can pay no more than $500 per month toward this debt while maintaining your monthly expenses.
If you pay $500 per month toward the credit card, it will take you 100 months (8 years, 4 months) to pay it off. You’ll pay a total of $50,000, including interest.
Pay that same amount per month into a retirement account with a mediocre net annual return of 7% (after fees), and at the end of 100 months, you’d have about $100,000!
That’s a total wealth swing of nearly $150,000 in 100 months!"
Not one of my clients has walked into my office and said,
"This was my plan; I wanted to run up all these debts; live a life like I was destitute for years; let creditors harass me for months on end, collect a judgment or two against me; and now refuse to pay what I owe..."No one I ever helped, that I know of, expected to be in my office to file bankruptcy when they started down the road of building debt. In fact, many expected to use the debt to help them get back on track. It is even worse when you are approaching retirement or retired.
I have worked with clients who are retired. It is even harder to recover once you hit that fixed income. Recovery is much harder if not impossible. If a person finds themselves in financial trouble later in life, they can make bankruptcy part of their retirement planning. Check out the article and some of the other links it contains.
If you want assistance, legal representation, or just want to know more about Mark Medvesky or our firm of Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.
Other Blog Articles:
Bankruptcy - How can I file bankruptcy with $50,000 in my retirement account?
Bankruptcy - When is it a "good" time to file?
Bankruptcy - What information do I need for my first meeting with a bankruptcy attorney?
Bankruptcy - Listen for the information you don't want to hear and ask the questions you don't want to know the answers to ...
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