DMD Staff

Even dentists often think about debt around the holidays, as the gift-buying season can have you considering taking on new debt. Even established dentists deep into their careers can struggle with accumulated debt. If you own your own practice, you’re faced with the constant balance of investing further in the practice, paying down debt, or taking some more of the practice revenue as income. How do you find the balance?

Consolidation is one way to rid yourself of your debts quickly by combining all your current outstanding loans and liabilities—and their potentially outrageous interest rates&mdash;into a single debt vehicle with a lower interest rate. But consolidation is no panacea; first, it won’t change the underlying behaviors that led to an accumulation of debt. Second, a consolidation may give you the illusion of lower debt, when in fact the overall debt hasn’t changed at all. Let’s look at some things to consider when tackling debt.

You may think your debt is under control, or alternatively you may try not to think about your debt at all. But if you regularly use credit cards or lines of credit to meet basic monthly expenses, if you buy items on credit that you wouldn’t buy if you had to pay cash, and if you are at your credit limits and thinking about extending your borrowing capacity, you aren’t alone, but you may want to look closely at your spending habits and make an important adjustment.

Step 2: Identify “good” and “bad” debt. Stand pat on the former, and address the latter.

Mortgage debt that is less than a quarter of your gross income is unlikely to be “bad” debt, unless you are paying an out-of-market interest rate for some reason. Student loan debt is often among the “best” debt, because it generally has a low interest rate as well. But credit cards are almost always bad debt, no matter how many miles you may be earning. Pay off high-interest credit cards as soon as you can, because they will cost you in the long run. And during the holiday season, avoid store credit cards at all costs. One of my favorite bloggers, 

The budget is the lynchpin for all your financial endeavors. If you’re in debt, it’s even more important to identify how much income you have and where it’s going. Finding out exactly what you spend each month can be a big part of identifying areas that need to be cut back if you’re going to get out of debt.

Nearing Retirement: Signs You Might Be Spending Too Much

Step 4: Consider a consolidation loan, but with caution.

Research interest rates of credit providers, including banks (and starting with the bank where you are a customer), and consider working with a financial advisor who can offer some tips. You’ll need some financial information, including updated credit card statements, pay stubs, and lists of investments. Shop around, and find out how much you can borrow and what the terms are for paying it back. Not all debt consolidation strategies are created equal.

Step 5: Pay off your debt, and don’t accumulate new debts.

Start making the bulk of your payments to your highest interest rate debt first. Then, move on the next set of debts. Make sure you don’t pay one debt exclusively while letting the others languish, as this will negatively impact your credit rating. In the meantime, make sure you aren’t accumulating new debt, as it will completely counter your strategy.

Start immediately, but don’t expect immediate results.

Just as with your savings and investment strategies, starting sooner rather than later will yield better results. But don’t be impatient about paying down your debt. Chances are you accumulated it over many years, and you can’t expect to be rid of it in an instant just because you started focusing on it. Chip away as you can, and put any extra income or found money toward your debt whenever possible.

Before you know it, you will be able to transition those funds to retirement savings and investments. 

Articles

Consolidation is one way to rid yourself of your debts quickly. But it is no panacea.

End of Year Strategies: 5 Simple Steps to Paying Down Debt

The end of any year is a busy time for dentists, with the demands of the holiday season, closing out the 2016 fiscal year, and budgeting and planning for 2017. But if you are nearing retirement, you may want to try and squeeze in one more consideration: taking stock of your retirement planning, where you stand, and what you may need to adjust.

Get a Jump on Taxes by Considering Your Business Entity Options

The allure of your pending retirement can sometimes seem overshadowed by the uncertainty around these next few years. Will you find the same sense of fulfillment when you’re no longer caring for patients? Will you struggle to keep yourself occupied without the daily purpose of work? And, perhaps most important, will you have enough money saved to make your retirement enjoyable? The first two questions are difficult to answer, and the third is no bargain either. But there are steps you can take as you near that projected date that can help you make sure you’re ready.

 If you got started on your retirement savings late, and now you’re 50 or older, you can contribute as much as $24,000 a year to workplace retirement plans such as a 401(k) or 403(b) in 2016. You may have heard that the maximum contribution is $18,000 per year, and that’s true since 2015. But you can contribute an additional $6,000 if you’re over 50. If you’re in position to max out your contributions, that’s a good chunk of change to add to your nest egg. For those dentists who might want to save even more, you can look into a Roth IRA, although you may be near the maximum income for people who are able to contribute to one. Talk to your advisor about this and other potential strategies.

Yes, your investments should gradually shift from more aggressive to more conservative as you get closer to retirement. But that doesn’t mean you have to become ultra-conservative, especially if you’re interested in building extra income. You may want to think about keeping some of your investments invested for growth.

Though it takes a little bit of the shine off the idea of being unencumbered, a part-time job is a necessity for many retirees, and a way to stay sane for many others. Having a flexible role that you can go in and out of will still allow for travel and time for hobbies, while helping pay for some of those hobbies and helping you keep some of your retirement savings still earning rather than being spent. Certainly, your skills as a dentist will allow you to pursue ongoing work in the field, perhaps filling in for local dentists looking for time off. But you should consider other pursuits as well.

 Before you retire, make sure you know the absolute bottom of the range of income you’ll need to cover basic expenses. Then, measure this against your projected income, including all retirement plans, other investments, and Social Security. Does the math work? If it doesn’t, while you’re still earning is the time to talk to a financial advisor about the strategies available to you.

One you’ve made the leap, adjustments won’t be as easy, and your earning window will have closed. Look now so you can act now.

The end of any year marks a good time to see where you stand and what you might need to change in terms of achieving your retirement goals.

End of Year Strategies: Take Stock as You Near Retirement

, we looked at a holiday reading wish list that can get you on the road to financial literacy. But for every 

This may seem like common sense, but not everything in books by well-known authors is accurate. You would be surprised how often we’re lured in by a slick-looking book cover and a clever title. Just because a book is a bestseller doesn’t make the financial advice contained therein any more valid. Let’s take a look at some general things to avoid on the bookshelf or in the digital library.

Not everything that Suze Orman says is wrong; neither is Jim Cramer incorrect about every single one of his stock picks. As they saying goes, even a busted clock is right twice per day. This isn’t just about picking on Suze or Jim; they aren’t the worst of the offenders by any stretch. But what they have in common with financial charlatans is their insistence on being labeled an “expert” on financial matters. True experts don’t even bother calling themselves experts. Their expertise becomes immediately evident to those in the know. You’re more likely to get good financial advice from someone who considers themselves a “practitioner.”

7 Warning Signs About Your Financial Advisor

I have a theory that important mail almost always arrives in a plain, white envelope, whereas junk always comes plastered with “Open me now or suffer a fate worse than death!!” in red 24-point font. Knowledgeable authors generally won’t waste much time wowing you with their credentials. Consider that there may often be an inverse relationship between the book jacket credentials and the quality of the advice inside.

Look, there’s no sugarcoating this: anyone making money hand over first flipping houses, buying penny stocks, “hedging the market” or using any other fancy-sounding strategy is not going to stop using that strategy long enough to write a book about it and then sell you that book. People making money want to continue to make money. What they most certainly DO NOT want to do is create competition for themselves by arming hundreds or thousands of other people with the exact information needed to successfully win in that marketplace. The author’s actual strategy is not to help you make money like he or she has; it’s to help 

 make money when you buy their book. This is true even if they’re giving the book away for free. Trust me, there are some costly seminars coming right up that will help you “truly step up your game.”

Dentists, while generally intelligent, can fall prey to these things just like anyone else. Don’t waste your valuable time. If you’re serious about flipping houses or (insert money-making strategy here), there are ways to go about it and people who have made money doing it. You’re incredibly unlikely to read their book and be able to translate that to personal wealth.

Entirely aside from the 2016 election and how you may feel about President-elect 

 is a dreadful financial book comprised of misinformation, clichés, and all-around terrible writing. It is a truly awful book. First of all, Trump didn’t even write the book; it was written by ghostwriter Tony Schwartz, who has himself called the book “

.” I’m pretty sure even that is a stretch! 

Just because the book made it to print doesn't make it valuable.

Financial Advice that Doesn't Pass the Sniff Test

This holiday season, even as brick-and-mortar bookstores go the way of the dodo bird, there are more choices than ever when it comes to financial education and investing. Too many choices, perhaps. Sifting through the vast landscape of information to get to the good stuff can feel like sifting through sand. Some of the choices available to you may have a great marketing hook, a clever title, a notable author, or all three. But the quality of the information inside varies greatly.

Book recommendations can be a difficult trick, because we all have different tastes and investment approaches. But the selections below offer significant appeal for both those looking to be a better investor and those who simply want to be better versed in overall economic principles; the latter can lead to the former.

more often referenced than actually read. But if that’s true, it would be a shame, because Smith’s 1776 masterpiece remains fundamental to understanding economic principles. Reading it won’t give you current investment strategies. How could it; the book was written about 235 years before the Kindle became ubiquitous. But it will certainly increase your understanding of economic models and what drives the movement of the markets.

This highly acclaimed book, cited by legendary investor Warren Buffett and many others as their inspiration, won’t keep you up-to-date on the latest investment strategies. That’s because it was written in 1949. But it will give you a great feel for investment basics that is as financially sound and pertinent today as it was during the Truman administration. It is considered by many to be the “Bible” of value investors. Value investors are great investors to emulate.

By now, you’ll begin to notice a pattern to my selections. The best investment strategies are the tried and true, and they’ve been around for a long time. The best investment books espouse those strategies. What makes Philip Fisher’s Common Stocks and Uncommon Profits stand out from the crowd is his unrelenting focus on straying from the investment crowd to find value, and his step-by-step approach to learning how to identify that value.

Trump’s Potential Impact on Retirement Savers

Peter Lynch is a well-known and highly successful fund manager who brings years of investment experience to the table. But the refreshing thing about Lynch’s 

, is that they’re written not for his experienced investor colleagues, but for regular folks who want to be good investors. The advice in both books is logical, and though some sections may seem like common sense to even investors with the mildest of experience, the tenets espoused in 

 will serve you well through a lifetime of investing. Lynch also has a unique voice and a gift for pithy anecdotes, so neither book feels like coursework. The key takeaway from both books is how to categorize different companies you’re considering investing in, and using those categories to find long-term value.

Bogle is widely seen as the pioneer of the index fund, and for good reason. Index funds are a form of passive investing in which the fund is structured to track a stock or bond index such as the S&P50 or the Barclays Capital Aggregate Bond Index, among others. In this 1999 book, Bogle outlines why index funds often perform “active” fund management. Along the way, Bogle successfully argues against what I call “investment guru” practices that tend to benefit the dealer/broker more than the investor. Bogle’s book explains why that is counterproductive for investors, and along the way provides other great nuggets of investment advice. There’s a 10

 anniversary edition of this book also that provides some great updates.

None of these selections are a big secret or a groundbreaking recent find, but if you haven’t read them, they’re new to you--and a great place to start building a wealth of investment knowledge.

In part 2, we’ll look at some general guidelines for avoiding bad advice from financial books.

There's great information out there, but where do you start?

A Reading List for Increasing Your Financial Literacy

Like many things that seem to be off in the distant future, saving for retirement is all too easy to ignore. Today’s bills, debts, and needs too often get in the way of establishing and sticking to a long-term plan. But study after study about the state of retirement tells us that these built-in excuses for not saving enough can come back to haunt retirees. The negative impacts can be felt in the form of having to work longer than expected, having to forego activities or purchases you planned on, or even taking on part-time work while in retirement.

Let’s take a look at some collected statistics about retirement. Alongside each, we’ll include a tip for making a different truth for yourself as a retirement saver.

 Fewer than half of all working-age people have tried to calculate how much they will need to save to live comfortably in retirement (source: 

, 2015). Among those still on the job, only 48% have tried to figure out the exact numbers.

 Ignoring a problem won’t make it go away. Get a grasp of your future needs by using a retirement calculator or working with your advisor to establish specific retirement goals.

 Americans save more now than they did 3 years ago, but it’s still a fraction of what they saved a generation ago. In late 2015, the personal savings rate in the US hit a three-year high of 5.65%. But in 1980, the savings rate was 

 To achieve a specific savings goal, you have to set a specific savings goal. Figure out what you can afford to put away by building a great budget, and then stick to those goals!

 Women continue to earn less than men. In turn, they save less than men, too. For every $100 a man saves, the average 

. Yes, you read that correctly. It’s almost half.  

 Dentists who are women don’t face the same pay gap as they do in other professions, but interruptions in their career arc, such as having and raising children, may mean a delay in peak earning years typically experienced during the mid- to late-40s. Where there is income disparity, it can be made up for by staring retirement savings earlier. In fact, there is no better way to secure a comfortable retirement than putting money away as early in your career as possible.

7 Warning Signs about your Financial Advisor

 Healthcare costs are a major danger to your retirement income. Of people 65 years and older, 70% will require long-term care services at some point in their lives. The average US yearly cost for a room in a private nursing home is about $90,000. That’s a big cost to bear when your full dental income is no longer available.

 Medicare will cover some basic medical expenses, but as you know from dealing with your own older patients, there are gaps in coverage, including dental care, vision care, and long-term care costs. Also, you need to consider your own current and future health, and that of your spouse/partner or other family members who may rely on you for help. As an added step, make sure your life insurance coverage is sound. Consider long-term care insurance, supplemental health insurance, and prescription drug coverage through Medicare Part D. You may never need the extra coverage, but if you’re in a position to put that money away now, you’ll enjoy your long-term good health even more knowing you’re prepared for a worse outcome. 

Quick tips to put you on the right track toward saving sufficiently for your retirement.

Facing Up to Some Hard Retirement Truths

Small business owners—as many dentists are&mdash;face challenges that many other professionals do not. If you own a bait and tackle shop, you have to know how to fish, but you also have to know how to run a business. The same is true for a dentist. Being a solid professional at caring for teeth isn’t enough; you have to know your way around budget spreadsheets, staffing, and equipment depreciation as well.

It’s the rare dentist who has a perfect skill set for both of those roles. Luckily, you don’t need to be perfect at either to carve out a successful career. But you do have to be willing to learn as you go. One of the best ways to do that is to find your vulnerabilities and address them head on. This involves a period of 

, and possibly some feedback from colleagues or staff. Let’s look at some areas in between dental care and running a business in which dentists often find challenges. For each, we’ll suggest a remedy.

Common vulnerability: You aren’t a great recordkeeper.

Well-kept charts work better than your memory, and generally work better in court as well. Obvious, right? But what may be less obvious is that the responsibility for keeping great records is not just your own. As the leader of your practice, it’s important that you stress with your entire staff the need to keep impeccable records.

 Pay particular attention to potential problem patients who have constant complaints about current or past care, have shifted from provider to provider, or fail to pay for services in a timely manner. But even for patients who seem like friends, or for patient encounters that seemed to go well, all care provided should be carefully noted and kept with a patient’s chart. Each entry should be timed, dated, and signed by the person adding the note. Outstanding recordkeeping isn’t a cure-all when it comes to facing litigation, but good records can be crucial to a successful defense of you, your practice, and your staff.

Common vulnerability: Lack of focus on the patient experience.

Unhappy patients are much more likely to pursue litigation than patients who like and trust you and your team. Patients who are unhappy with the overall experience of visiting your dental office may already have anger and resentment building up over a seemingly trivial matter such as an extended wait time.

 Take every opportunity to engage your patients about their entire experience—not just the level of care they received in the dental chair. Encourage both direct and anonymous feedback through survey cards or your website. Take any complaints seriously and address them directly with the patient if possible, whether it was a problem with the care delivered or even something that may seem trivial. This will not only circumvent some patients’ desire to pursue legal action, it will also make them more likely to return to your practice.

Common vulnerability: Failure to properly discharge a patient.

In running any dental practice, it’s pretty standard that some patients who were once regulars may suddenly miss appointments, switch their practice of choice, or otherwise disappear from regular care.

 For patients who may be difficult or who may have needed ongoing care, it’s important to follow up with the patient and pursue an official discharge of care, if necessary. This has the dual impact of starting the statute of limitations on any future legal action and creating some formal documentation that you are no longer responsible for the patient’s care.

Common vulnerability: Failure to refer a patient for a procedure. 

We all like to think of ourselves as experts in many fields, and you may have extensive training in many aspects of dentistry. But you have a comfort zone, too, and only you and perhaps your partners know what it is. Performing procedures outside that comfort zone might open you up to poorer outcomes, patient dissatisfaction, and potential claims.

 Make sure you’re completely comfortable and confident before undertaking any procedure. If you have any hesitation at all, no matter how potentially profitable the work might be, consider referring to a specialist.

Simple remedies to help you turn some weaknesses into strengths.

Identify Your Soft Spots as a Practice Leader

how the election of Donald Trump could affect the recent DOL legislation

 that would increase investor protections in their dealings with financial advisors. But there are many additional aspects of a Trump presidency that could affect investors. Let’s take a look.

How Trump’s Presidency Affects Small Businesses — Like Your Dental Practice

First, though, a cautionary note: As any 2016 pollster would surely attest, predicting the future is not just difficult for the worlds’ meteorologists; it can be difficult for anyone. And predicting the behavior of this particular President-elect seems particularly foolhardy. Still, it’s worth looking into what the environment might look like, based on the overall Republican agenda and what Trump has said during the campaign and since his election. Not that those two things necessarily match up!

Despite the fact that the nation is rapidly aging, domestic policies affecting retirement were rarely an issue during the Presidential debates and didn’t seem to get much airtime from either candidate. Typical hot-button issues affecting the soon-to-be-retired—including possible Medicare reform&mdash;were pushed to the back burner if they were discussed at all. But if the early analysis of the voters that pushed Trump to victory prove accurate, it’s clear that the economic frustrations of older, middle-class voters played an important role alongside immigration and foreign policy in the election results. It’s these middle-class voters who have added their voices to those displeased with income inequality, the near-death of pension plans, and the possibility of shrinking Social Security benefits.

Yet, the needs of this group of voters rarely seems among the priorities of the party in power. Trump’s campaign statements that he will not cut Social Security or substantially alter Medicare don’t square with a party hungry to reduce entitlement programs and government spending overall, while also favoring tax cuts. “Cut taxes and keep benefits the same” sounds great at a rally, but how realistic is it?

The simple math is that Social Security will soon be insolvent without either a massive increase in tax revenue or a massive decrease in money paid. What shape any reform might take is anyone’s guess, but those nearing retirement age should pay close attention to key issues such as the possibility of privatizing part of the program or increasing the age of eligibility for Social Security or Medicare. Banking your retirement date on the continuation of the status quo seems risky at best.

For those farther from retirement, keeping the status quo on Social Security has different implications. The latest math indicates that the program will run out of money in about 18 years. If you’re counting on Uncle Sam being the biggest contributor to your retirement income … well … don’t do that. Don’t do it under any circumstances, but especially don’t do it if the program doesn’t undergo a major directional shift.

We covered the immediate reaction of Dow futures to a surprising Trump win 

. But as we noted there, it will be months before we’ll truly know how financial markets may react to a President Trump. Thus, advice to keep a diverse portfolio is as timely now as it has ever been. 

What's in store for investors as they near retirement.

Trump's Potential Impact on Retirement Savers

The reactions to the 2016 Presidential election are far from over, but whether you’re pleased as punch or peacefully protesting, life—and business&mdash;must go on. In this installment of our 

ongoing series on what the election results may mean for you

, we’ll look at a few key questions for small businesses.

What Trump’s Win Means for Your Investments

Had Hillary Clinton been the winner, we might have a much better idea what the next few years will look like for small business owners. Clinton’s plans included some simplified tax and form filing and a proposed increase in the tax deduction that new small businesses can claim for their start-up costs, which would have been a significant boon to young dentists looking to establish their own practices. Clinton also would have been unlikely to meddle much with the Affordable Care Act (ACA), which obviously has implications for dentists in terms of pediatric dental care payment and, potentially, decisions around what type of medical coverage you may offer practice employees.

Can we predict the actions of a President Trump?

Under a President Trump, these impacts are less clear. Who knows what will happen with the ACA? Trump campaigned, as did all of the Grand Old Party, on repealing it, but in a meeting with President Obama late last week, Trump already showed signs of backing off of that campaign promise. Still, he will be pressured by his supporters and Republican lawmakers to follow through.

On the small business front, Trump’s business tax proposals touted benefits to business owners at all levels. Among other things, he promised to “level the playing field” for small business owners, sole proprietors, unincorporated small businesses, and pass-through entities. And earlier this year, Trump vowed to cut taxes to 15% or less of income for all businesses. Under this plan, he said, small businesses would benefit most. He also stressed that he would cut regulation of businesses massively.

Policy experts have questioned whether Trump’s tax-cut plans are viable, noting that they would lead to massive revenue shortfalls. Others have suggested that the impact of Trump’s proposals would be felt much more by larger businesses, perhaps at the expense of SBOs.

And, again, it’s unclear what the President-elect’s commitment is to the promises he made while on the campaign trail. But you might be surprised by how often campaign promises translate into presidential priorities. Political resource 

 has noted that most politicians follow through with “good faith” efforts to actually do what they said they would do during their campaigns.

Of course, Donald Trump is far from your average President-elect. The next few months may prove very interesting for dentists as healthcare providers, small business owners, and investors.

What is the likely impact for dental practices as business entities?

The Election Result and Small Businesses

If you want to make a dentist’s eyes glaze over, just try mentioning somewhat obscure executive branch rule-making. But the simple truth is that the president-elect is likely to attempt to reverse or revise several policies and procedures set in motion by the current administration.

For the remainder of the year, we’ll be looking at the possible implications of a Donald Trump presidency, particularly as they may affect dentists as professionals and investors. Today, let’s consider what the election result may mean for legislation passed earlier this year and 

: the Department of Labor’s (DOL) “conflict of interest” rule.

In short, the rule was designed to strengthen protections for investors by requiring that registered investment advisors and other persons act solely in the best interests of their customers in making investment recommendations—avoiding conflicts of interests and operating with full transparency.

The President-elect hasn’t spoken directly about the DOL rule, so it’s not entirely certain whether or not the rule could be reversed, modified, or perhaps simply delayed. In fact, financial services firms likely to be affected most heavily by the rule are proceeding full steam ahead as if the rule’s provisions will in fact take place, as scheduled in April 2017 for some aspects of rule and by January 1, 2018 for full implementation.

But the rule itself is considered “industry-unfriendly,” so there is always 

the possibility that it will look different 6 months from now.

If the rule stays intact, investors may see some differences in how they work with advisors and the kinds of investment vehicles—and advice&mdash;offered to them. For example, the new rule as written includes significant enhancements to disclosure requirements, which means investment advisors will have to adjust their business models. Many transactions that used to be simple and straightforward will now come with a heap of disclosure documents investors will have to look through and sign. Certain products, such as variable annuities, may become too costly for advisors to profitably sell, due to the reductions in fees many will likely see and the increases in disclosure requirements. This may mean advisors simply won’t work as closely with investors of modest means, as the profit margin in doing so will now be lower. This may not affect dentists as much as lower earners, but it could.

There are no actions for investors to take now. But you’ll want to stay tuned for news about the impact of the rule. Beyond just your status as an investor, how the new administration handles the rule may be an indicator of how President Trump will try to tackle larger fish that could impact your practice, such as the Affordable Care Act, which Trump has vowed to dismantle. 

What now for the DOL fiduciary rule that takes effect this coming April?

How Trump's Views on Financial Regulations Affect Your Investments

Getting close to retirement certainly brings its share of anxiety. Chief among the concerns is typically the question of whether you’ll blow through your retirement savings long before you’re finished being retired. (Isn’t that a nice little euphemism? “Finished being retired!”)

As you near the big day, you can put your mind at ease by taking a look at your spending habits. Here are some key signs you may be playing fast and loose with an aspect of your finances that should be kept slow and tight.  

Your budget is missing an important column.

 It’s called the “actual” column, and its role in the budget is helping you determine what you 

 spent on something, as opposed to what you budgeted for it. The actual lack of an “actual” column is actually what breaks more budgets than anything else. 

 Setting a budget is great, but it’s meaningless if you don’t measure how you’re doing against budget and make needed adjustments. Take the important step of keeping track where your money is going.

You’re spending in big (and plentiful) chunks.

 Most experts recommend that retirees should spend about 4%, and certainly no more than 6%, of their savings annually. Let’s say you have a nest egg of $1 million. A 5% rate would mean you would spend $50,000 per year. Sounds like a lot, right? But consider that as a retired dentist, you’ll have a lot more free time. And as a newly retired dentist, you may have a travel or hobby itch to scratch.

Pay really close attention to the first few years of retirement spending, as these are the years most likely to produce inflated spending or impulse spending. Why? After working so long and finally reaching your goal of retirement, you may go a little overboard on the travel or the hobby pursuits. But even if those are within reason, consider that picking up golf or fishing or any number of other hobbies will mean an initial investment larger than an ongoing one—unless you lose golf balls at the same rate I do!

You’re spending an outsize amount on mortgage, car, or credit card debt.

 Many retirees ditch credit cards altogether, and for good reason. After your peak earning years as a dentist, you don’t want to be accumulating bad debt. And no matter how many times you hear Samuel L. Jackson or Jennifer Garner tout the benefits of having plastic in your wallet, the simple truth is that credit card debt is bad debt. Mortgage debt is different, of course, and most car loans are relatively reasonable. But paying a large percentage of your savings for debts incurred earlier in your life is a sign you may want to cut back on some of the things you don’t own outright.

If you find yourself still battling debt as you near retirement, look into debt consolidation. You may also want to consider downsizing your home, or using your home for income.

I spend a lot of time on community message boards related to retirement, because I like to hear strategies directly from the recently retired. One thing I find striking his how many experienced retirees give the advice to take the first few years of retirement slowly. Retirement isn’t a race; for the newly retired, it’s the reality that will define the rest of your life. It can all come at you a little fast in the first few years.

Ease into it. Monitor your spending. Make good choices. If all goes well, you’ll have many years beyond the first few to pursue whatever kind of life you want most. 

As you near retirement, here are some key signs you may be playing fast and loose with an aspect of your finances that should be kept slow and tight.