It’s a new year and, unfortunately, many of us continue to grapple with financial issues that do not want to go away. Here are two to think about:
Not savings enough for retirement.
I have encountered countless clients who, although having worked for years, have accumulated little or no retirement savings. They have allowed debt to control their lives and have sacrificed savings opportunities in the process. This perspective must change.
Bankruptcy can be a first step toward achieving financial security. Did you know that retirement savings are fully protected from your creditors – even in bankruptcy? Whether you have one dollar or a million in a qualified retirement account, it is beyond the reach of your creditors. Shedding toxic debt, such as credit cards and medical bills in bankruptcy, can be a good thing.
Inability to say no to your adult children
In 2014, adults between the ages of 18 and 34 were more likely to be living with their parents than with a spouse or partner or on their own, according to Pew Research. This arrangement could add financial stress. In addition, roughly 39% of parents surveyed in another Pew poll said they helped their adult children with errands, housework, and home repairs. And 58% said they provided financial help to their adult children.
Perhaps rather than just saying “Yes”, it may be more productive to sit down with your children and get to the heart of their financial issues. Parents should not be paying their children’s debts. Here again, bankruptcy can be used as a tool to reset things financially and move forward. We are a country of second chances. It is ok to make mistakes. No one wants to consider bankruptcy but it could turn out to be the best option.