Shedding debt so you can save for retirement is the most compelling reason to file bankruptcy in my book.
Get rid of the debt that’s dischargeable so you can fund your retirement, I exhort.
Between the crippling cost of housing in the Bay Area and parent loans for college, there is so little margin for discretionary spending that I begrudge every dollar my clients spend on credit card debt.
I cringe when I see families paying American Express instead of their IRA. I acknowledge the reality of the obligation to the credit card folks. But the consequences of not paying are vastly different for an individual than they are for credit card issuers.
American Express, and every other consumer lender, built into its pricing model the fact that not everyone who borrowed money on their plastic card would repay. They still make money whether you pay off your card or not.
American Express doesn’t have to retire, and you do.
With few exceptions, every client I meet without an employer funded or sponsored retirement program has only pennies set aside for retirement.
All that said, when I ask about what the client has saved for retirement, I’m met with one of two retorts: [Read more…]