Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

federal workers - Aubrey Lovegrove

Q & A: Nearing Retirement in Debt

[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]Question: If someone at the age of 60 owes about $12,000 on a home equity line of credit at a variable interest rate at 7% and has about $130,000 of my qualified savings sitting in cash as a wall against the falling market stock, should some of that money be used to pay off the HELOC?

Answer: in this situation you have enough parts moving plus you’re really close to retirement. Getting a second opinion when you’re at least five years from retirement would be a sensible thing to do seeing as the decision you end up making at this point could be irreversible meaning that the chance of you living comfortably could be affected.

Generally, it is best if you don’t tap into retirement savings to pay off debts rather use your current income. A good number of people who take out some of their retirement savings cannot account for what got them into debt and end up piling up more debt and a few years down the line less savings.

Consider getting a fee-only financial planner to review your situation and give you tailored advice to specific to your unique situation and set you on the right path to make the right choices.

Who is an independent contractor? – many states use a test known as the ABC test to determine whether someone can be identified as an independent contractor. A few states use all three tests such as California, but the majority of the other states use just two A and C. The three are; the worker performs work that is outside the normal cause of the hirer’s business, the worker is engaged customarily in an independent trade occupation (or similar business) as the work performed by the hirer, and lastly the worker is free from the contrast and direction of the hirer in relation to the work performance both in work and under the contract.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”35960″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]

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