Don’t Let Debt Derail Your Retirement Savings

Also: Don't Forget to Make This Smart Investing Move Before the End of the Year

͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌  December 20, 2022 During the decades it takes to save for retirement, a lot can happen. It’s like a real-life game of Chutes and Ladders. When you’re in the early stages of your career, just coming up with the money to set aside might seem impossible. (For what it’s worth, even 1% of your salary will make a huge difference after decades of compounding.) In your late 20s and 30s, you get some salary increases (win!), which you probably know you should use to beef up your savings. But you might want to save up to buy a home or be cash-strapped because you’re maintaining one. Then you might be starting a family. You could be setting aside money for college tuition and other family expenses, like vacations. Life is like that. As a CFP and personal finance writer I know once said, “Things cost money!” But one thing that really hamstrings retirement saving is non-mortgage debt. Credit card debt tops the list, followed by auto loans and student loans, according to the Federal Reserve Bank of New York. When your monthly budget has to include debt repayment, it can take a real bite out of your ability to save for the future.  Read our story on how many Americans struggle with debt, and some steps you can take to save for retirement even if you carry debt. — Jill Cornfield, deputy editor P.S. If you got this newsletter from a friend, sign up here for email delivery to make sure you don't miss the next issue.   More Insights and Advice from Money

Don’t Forget to Make This Smart Investing Move Before the End of the Year Your December checklist is probably getting long, but there’s one more item to add to your to-dos that can make a big difference for your investments and potentially your next tax bill: rebalancing your investment portfolio. READ MORE

How to Give Stocks as a Gift It’s been a pretty bad year for the stock market, but that means you can give more shares at a lower price. Here’s what you need to know about giving stock as a gift. READ MORE

Best Online Will Makers This time of year, it’s natural to look back as well as ahead. That could mean updating your will — or making your will, if you don’t already have one. You can save on attorney fees by making out your will online. Here’s what to know about making out a will using an online service. READ MORE

Dollar Scholar Asks: How Do I Avoid Holiday Shopping Scams? Holiday shopping? With just a few days left, you probably still have gifts to buy. Our editor Julia Glum has tips on how to avoid the perfect storm of last-minute shopping and online scams. READ MORE

Retirement 1, 2, 3   If you’re wondering what to invest in, in retirement — individual stocks? ETFs? — this podcast has answers. Penalty-free withdrawals from your retirement account? Mandatory auto-enrollment in a 401(K)? (Don’t worry. You could still opt out.) Congress has been working on pulling together three bills into a single package known as Secure 2.0, which would make these things a reality. Millennials and Gen Z both say they’d like more than $1 million for retirement. No surprise, they’re also interested in having crypto as a 401(k) investment. Big surprise, nearly half are interested in an annuity option.

This newsletter is free because Money earns a commission when you click or make purchases from the links in this email and on our site. We also receive compensation for some of the products and services featured in this message. Offers may be subject to change without notice. Learn more about how we make money. Privacy Policy • Advertise With Us • We're Hiring! To stop receiving these emails, unsubscribe or manage your email preferences. Copyright ©2022 Money Group, LLC. All rights reserved. Metro Office Park Calle 1, Building 7 Suite 204, Guaynabo, Puerto Rico 00968, USA