A. Here are 5 payoffs Gen Xers (those born between 1965 and 1980) should consider to enjoy retirement:
1. Payoff the house
Yes, there is tax deduction benefit associated with a mortgage. But do you know only the interest part of your mortgage is tax deductible? With many years of paying the mortgage, chances are each month your mortgage payment has less and less interest and more and more principal payments. A peace of mind get help you look into a lot other opportunities that you previously couldn't due to the mortgage burden.
2. Payoff the kids
This means do not let kids' education expenses and their life expenses be your burden. They can borrow for their life, but you cannot borrow from anywhere for your retirement!
3. Payoff the parents
Chances are your parents are still alive, and it's your and your siblings' responsibilities to take care of them as they become older. Make sure they get long term care insurance as well as annuity income so they can fully support themselves.
4. Payoff the body
Your health situation will decide your retirement life, so eat healthy and exercise regularly. You can also start preparing potential long term care needs. There are a lot more options that are better than a dedicated long term care insurance, so research around.
You can always use our 401k evaluation tool to check if you have enough money saved for your retirement.