Outstanding debt can have a significant impact on your emotional wellbeing. I’ve heard clients describe it as making them feel “sinking” or “hopeless.” It may comfort you to know that you are not alone: living with significant debt is an issue millions of Americans face. It’s likely people you are close with are dealing with this too—they just don’t talk about it. Here are some strategies to reduce debt, prepare for retirement, and find some confidence in personal financial matters. One couple had a significant revolving debt after years of borrowing for vacations, college tuition, and special events. They wanted to take a lump sum 401k distribution to pay it all off. However, by doing so, they’d be creating a significant taxable event for that year. Further, they would not be breaking the cycle of poor habits that led to this situation—stealing from Peter to pay Paul. What they really needed was a strategy to change their spending habits while paying down the debt, and working towards a comfortable, secure retirement. We worked together to assess how best to utilize their assets to create an enhanced stream of income to reduce their debt over time. This allowed their debt to be paid off over several years without negatively impacting their discretionary income, providing them with the type of financial and emotional comfort they previously thought was unobtainable. By the time this couple retires in five to seven years, their debt should be paid off, and their retirement lifestyle will be enhanced by the cash flow created and the positive habits formed. Spend some time with a professional experienced in guiding people through these types of issues. Our team is happy to provide you a complimentary meeting to discuss your debt, retirement, or whatever part of your finances that may be of concern. Call us today!
Keith Barberis, Financial Advisor of Raymond James Financial Services, is located at 7550 Wisconsin Ave Suite 420, Bethesda, MD 20814. Steward Partners Global Advisory LLC and Barberis Wealth Management at Steward Partners maintain a separate professional business relationship with, and our registered professionals offer securities through, Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Steward Partners Investment Advisory LLC. He can be contacted at 240.800.3447 or at keith.barberis@stewardpartners.com. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements. Views expressed are those of Keith Barberis and not necessarily those of Raymond James or RJFS, and are subject to change without notice. Information contained herein was received from sources believed to be reliable, but accuracy is not guaranteed. Past performance is not indicative of future results. There is no assurance these trends will continue or that forecasts mentioned will occur. Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person's situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. The examples throughout this material are for illustrative purposes only. Actual investor results will vary. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success. Ad Approval #2598115