The economic uncertainty arising from the Pandemic of 2020 provides an opportunity to evaluate one’s personal financial circumstances – What type of debt am I carrying? Are my financial priorities in sync or do they need adjusting? How can I pay off my debt more quickly without drastically affecting my future?
One can argue that paying off debt, especially student loans, and investing are equally important. But, are they really???
When comparing the interest rates on your debt with the average annual return in the market, paying off debt quickly in order to free up funds for investing likely will be much more important for your future financial health. As returns in the market are not guaranteed, freeing up that extra money may provide great peace of mind.
Unfortunately, the conventional means of paying off debt quickly – sending more to your creditors every month or making extra payments – leads to a “waste” of your money. Sure, you’re paying down your debt faster, but you lose the opportunity to realize earnings on the money you send directly to creditors.
Why not use your money wisely? Why not pay off your debt with the same money on which you realize a guaranteed annual return? Why not use your money for two purposes, not just one?
Our clients are doing just that…
Our clients are paying off their debt much quicker than expected with the money on which they are earning a guaranteed return, plus dividends. Although not guaranteed, dividends have been paid every year for over 100 years.
The, once your debt has been satisfied and your disposable income has greatly increased, you’ll have much more money available for investing.
In short – – pay off debt before directing money to retirement. You’ll find yourself with a lot less stress.
Contact The Money Architects at Vivensure® to learn how to energize your hard-earned money, to super-charge your debt elimination, and to set yourself up for tax-free income in retirement!!!