Financial Wellness Minute: Financial Achievements to Hit on Your Way to Retirement

Get smarter about your money with this Financial Wellness Minute. I'm Patrick Voigt, Manager at Mid Minnesota Federal Credit Union's Detroit Lakes Office. Retirement might seem like a long way off or you may be on the downhill slope towards it. For a more comfortable retirement, here are some financial achievements you can strive for.

1. An Emergency Fund. You should try to maintain three to six months of expenses in cash to cover for life's unexpected events. We stress cash, because you do not want to tap into your IRA or 401(k) to cover surprise expenses.
2. No Mortgage. While mortgage debt is a "good debt," there's nothing better than no debt. As you enter retirement, you may find still paying a mortgage could be a real financial stressor with your reduced income.
3. Reduce or Eliminate Credit Card Debt. According to TransUnion, Americans 65 and older have an average of $4700 in credit card debt in the first quarter of 2023.***That takes a huge bite out of your month budget. Just like with a mortgage, any debt you carry into retirement will become more of a burden because you won't be working as much or at all. Pay down your cards so that when you exit the workforce, you'll have plenty of cash to spend on more important things, like new pickle ball rackets.

A key to a comfortable retirement is being as debt free as possible. Want to know more about budgets or have a weekly financial wellness tip sent to you? Sign up below or, contact your local Mid Minnesota Federal Credit Union Office. Sign Up for a Weekly Financial Wellness Tip   Mid Minnesota Federal Credit Union is federally insured by the NCUA and we are an equal housing lender.   ***(Source: Savvy Money Blog and ***https://www.cnbc.com/2023/06/09/how-much-credit-card-debt-americans-hold-by-age.html (Graph) )