Retirement plan investors are struggling with turbulent markets and record-setting inflation. Many of them also face another challenge: managing their accounts online.

Thats according to a new J.D. Power survey of investors, which found that retirement plan providers are falling short when it comes to providing easy-to-use digital interfaces and tools.

Retirement investors are under a great deal of financial stress right now and they are looking to their plans websites and apps for information and guidance, said Mike Foy, head of wealth intelligence at J.D. Power. Unfortunately, many are not finding what they need and end up having to call customer service for help.

The survey comes at a difficult moment for retirement plan participants seeking to build nest eggs for their golden years. Markets have tumbled this year and inflation has soared. A majority of retirement plan investors (53%) now report that their savings are financially unhealthy, according to the J.D. Power survey.

A recent Federal Reserve report underscores the point: Total U.S. household net worth decreased by $6.1 trillion in the second quarter, primarily driven by a drop in stock prices. At the same time, household debt grew at an annual pace of 7.4%, according to the Federal Reserve.

The J.D. Power survey said that during the past year, the percentage of retirement investors classified as financially healthy has dropped to 47% from 60%. More than a quarter of investors now fall into the financially vulnerable category, according to the survey. At the same time, overall satisfaction with their retirement plans digital experience declined.

J.D. Powers survey also said that plan providers are missing the mark on digital account management. Just over a third of investors say they can manage their accounts digitally without contacting customer service. And only 22% say retirement plan websites and apps offer proactive guidance and help, according to the survey.

This is a moment-of-truth opportunity for plan providers, Foy said. When they get the digital experience right, they see a very significant lift in the likelihood of growing and retaining participant assets long after they have left their current employer.

When they get it wrong, however, retirement plan participants are more likely to take their assets elsewhere. Average job tenure for millennials and members of Gen Z is less than three years, according to J.D. Power.

J.D. Power polled 7,069 retirement plan participants for its survey, which was conducted in May and June.

Write to Andrew Welsch at andrew.welsch@barrons.com

Read the original:
Retirement Plan Providers Are Missing the Digital Mark - Barron's

Chances are, your retirement plan didn't account for this year's 8% to 9% inflation rates. If you've already streamlined your budget to the extreme, increasing your income is the next available remedy to manage those higher prices on food and healthcare.

Working is one way to raise your income, but it's not the only way. Below are five ways to generate income in retirement, none of which require you to punch a time clock.

Dividend stocks pay you to own them. The payments generally come quarterly, and you can earn annual yields of 1.5% to 3%.

Shifting some of your wealth into dividend stocks could solve your income shortfall, but there are caveats. For one, you need cash to invest. Since the stock market is down this year, it's not an ideal time to raise cash by way of selling other stocks that don't pay dividends.

Image source: Getty Images.

A better funding source is any money you have invested in low-yield instruments that you can liquidate without losses.

Another consideration in this strategy is your risk tolerance. Trading out a certificate of deposit (CD) for dividend stocks, as an example, would raise your risk profile substantially. Dividend stocks can lose value, especially if the company you're invested in decides to pause or reduce those shareholder payments.

If you do go this route, lean into stocks that have paid dividends for decades. Dividend Aristocrats and Dividend Kings are usually good choices for retirees.

As inflation rates rise, so do yields on Treasury bonds. U.S. Treasuries are debt instruments backed by the U.S. government and are considered as safe as cash.

The simplest way to buy Treasuries is to invest in an exchange-traded fund (ETF) that holds these debts in varying maturities. Shorter-term maturities are the least risky because they adjust more quickly to prevailing rates.

Short-term Treasury ETFs are currently yielding about 3%. These don't appreciate the way dividend stocks can, but they're much safer.

As with a dividend-stock strategy, you'd need a funding source to buy your ETFs.

CDs with a one-year maturity are currently yielding between 2.5% and 2.75%. A CD is a deposit account, so it's insured by the FDIC for up to $250,000.

The national average yield on cash savings is 0.59%. If you moved low-yielding cash into a CD, you could quadruple your interest earnings.

The drawback is that a CD isn't quite as liquid as cash. You can cash out a CD before it matures, but you'll pay fees in the process. For that reason, you should only lock up funds you won't need anytime soon.

A reverse mortgage converts your home equity into cash, payable in a lump sum or via monthly income payments. It's a loan, but you don't have any monthly repayments.

Repayment happens when you pass away or move out of the home. At that point, your heirs can pay off the balance, or your reverse-mortgage lender can sell the home and uses the proceeds to repay your debt.

The downside here is that the interest rates and upfront costs on reverse mortgages can be high. For some, though, a reverse mortgage can be a good way to tap the equity in their homes.

You may already know about Airbnb, where you can market a spare bedroom to short-term renters. You may not know there are similar websites for renting out your garage, basement, spare car, motorhome, or travel trailer.

Your rental-income potential could be substantial, depending on where you live and the property you'd like to rent. Before you dive into this strategy, though, check with your insurance providers. Your policies may prohibit you from renting covered assets.

More seniors are returning to work in retirement to combat shrinking savings accounts. That doesn't have to be your path, however. If your budget isn't balancing the way you'd like, look at other, non-working ways to generate income first.

Dividend stocks are a classic choice for retirement income. Treasury debt and CDs may be viable options, too, thanks to today's higher interest rates. You could also finance your retirement income through a reverse mortgage.

Lastly, if you'd rather avoid financial instruments and debt, you could rent out an asset you're not using. You'll have more foot traffic through your home this way, but that may beat going back to work.

See the article here:
5 Ways to Generate Income in Retirement Without Going Back to Work - The Motley Fool

Bonneville Denver announces that after 25 years with the station, Sandy Clough is retiring from full-time hosting duties at 104.3 The Fan (KKFN-FM). In his time with the station, Clough served in a variety of roles, working in every daypart and hosting postgame shows.

Ive had a tremendous experience over the past 25 years sharing my opinions and interacting with our wonderful listeners at The Fan, Clough said. Being able to share in the joy of Denvers wins while consoling the citys heartbreak of losses was a privilege and responsibility I was honored to have. Im very grateful and appreciative for all of the amazing colleagues Ive had the opportunity to call teammates, and most of all Im extremely thankful to The Fan audience who took the time to listen in and interact during our shows.

Sandy Clough has had an incredible broadcasting career, leaving behind a standard of excellence on The Fan that will carry on for years to come, said Bonneville Denver SVP/market manager Katie Reid. We are all incredibly thankful to Sandy for all of his contributions and his unwavering commitment to quality programming on The Fan over the past 25 years.

Like so many other Denver sports fans, I spent hours glued to The Fan listening to Sandy Clough entertain and educate, said The Fans program director Raj Sharan. It was thrilling to have the opportunity to produce Sandy as theres never been a more prepared host. Sandys passion came through the speakers in captivating fashion, and his legacy will be forever engrained into The Fan, carrying on for generations to come.

Clough came to Denver in 1979 as a host on KOA-AMs Broncos Radio Network. He later hosted for KYBG-AM from 1990 through 1996 and joined The Fan in 1997.

***

Here is the original post:
Sandy Clough announces retirement from 104.3 The Fan - 104.3 The Fan

In 2007, at 30 years old, I achieved a net worth of $1 million. I had saved 50% of my $150,000-per-year salary, invested 90% of every annual bonus, and had a few successful real estate investments.

Surprisingly, reaching that milestone didn't make me happier. In fact, I felt pretty miserable. I was working more than 60 hours a week at a job I no longer enjoyed. Still, I kept going and eventually reached a $3 million net worth enough for me to quit my job and retire early at 34.

It's been 10 years since I left the corporate world, and I've had a lot of time to reflect on what gives me the most satisfaction in life.

I initially thought the answer was wealth. But getting rich didn't make me happier. Doing these three things have brought me more joy than money ever did:

Although I was scared to leave behind my secure banking job, I took a leap of faith to do what I love: Work on Financial Samurai, the personal finance blog I started as a hobby in 2009.

Very quickly, I realized how much I enjoyed writing and connecting with other people online. So I made a commitment to publish three times a week. And after I retired, I had even more time to write.

Each morning felt like Christmas; I'd wake up eager and excited to read everyone's comments. Since then, people have shared stories with me about getting their first jobs, buying homes, starting families, living with disabilities and launching their own businesses.

The social connection brings me so much happiness. It's as if I've grown up with millions of readers.

One of the downsides to early retirement is feeling that your skills have faded and that you're no longer contributing to a broader team or purpose. I've overcome this sadness by transforming from mentee to mentor.

For example, I became a coach in 2017. For three years, I coached a high school tennis team that ended up winning sectional titles for the first time in their school's history. Even though I only made $1,200 a month for each season, the joy of coaching was priceless.

I'll never forget when one senior, who struggled to close out deciding matches, finally won one.He threw his arms in the air and rushed up to give me a hug. It was a wonderful moment.

If you really want to feel rich. Be a mentor. Share your wisdom. Help people achieve their potential. Giving your time is more rewarding than only giving your money.

Even though it was scary to not have a steady job at 34, it was thrilling to see if I could survive without a steady paycheck. I felt like a college graduate again, ready to face the world and reinvent myself.

When the pandemic hit, I decided to write a book. It would be my first foray into traditional publishing, where at the end of the journey, I would have a physical book in my hands.

So for two years, I wrote and wrote and wrote. Then I spent another six months editing.It was a learning process trying to figure out how to keep readers interested in a topic that many might find intimidating. I also broke through my comfort zone and did interviews on live TV.

My book, "Buy This, Not That: How To Spend Your Way To Wealth And Freedom,'' was released in July this year and became a national bestseller. It was fulfilling to see my years of hard work, during incredibly uncertain times, pay off.

Sam Dogenworked in investing banking for 13 years before startingFinancial Samurai, a personal finance website. He is also the author of"Buy This, Not That: How to Spend Your Way to Wealth and Financial Freedom."Follow Sam on Twitter@financialsamura.

Don't miss:

Read the original post:
45-year-old who retired with $3 million says 'getting rich' didn't make him happierhere's what did - CNBC

Pat Sajak is gearing up for his final spin.

The veteran entertainer, 75, says hes almost at the end of his time on Wheel of Fortune after serving 41 years as host.

Sajak made the shocking admission in an interview with Entertainment Tonight on Thursday. Were getting near the end. Its been a long [time]. Were not gonna do this for another 40 years. The end is near, he said.

He added, Its an honor to have been in peoples living rooms for that long. Were happy and proud.

Wheel of Fortune first premiered back in 1975, with Sajak hired as host in December 1981. Vanna White, 65, was brought on as co-host in 1982. The duo have shared the screen together for the past 40 years.

Last year, Today reported that Sajak and White had signed a lucrative deal to continue co-hosting together until partway through 2024 but Sajaks new comments could indicate theyre seeking an early exit from the gig.

Wheel of Fortune fans shouldnt despair, however, with Sajak saying the show is likely to continue long after he and White step off the set.

In most television shows by this time, you would have said, Thats probably enough, but this show will not die, he explained. It appears I may go before the show.

Its not the first time Sajak has addressed retirement rumors, telling Entertainment Tonight last September that he couldnt foresee himself spending another decade on Wheel of Fortune.

Were certainly closer to the end than the beginning, Sajak stated at the time. Id like to leavebefore people tune in and look at me and say, Ooh, what happened to him? I wouldnt bet onseeing us in, like, 10 years, I would say.

White was also interviewed, and expressed a similar sentiment.

The blonde beauty said she would probably leave the program before the decade is out, before paying tribute to her co-host.

Weve been together for like 38 years and hes like my brother, she said of Sajak. Hes funny. I mean, we could finish each others sentences if we wanted to. We know each other that well.

It may be hard, however, for the well-paid pair to give up their plum roles. According to reports, each makes eight figures per year. Back in 2016, Sajak was reportedly making $15 million per year, while White raked in $10 million. Its likely theyll make even more money now after renewing their contracts last year.

Its possible Wheel of Fortune has spent too much of its budget on its stars, with fans recently railing about the shows new look.

One viewer claimed updates to the shows puzzle board made the program look cheap.

See the original post here:
Pat Sajak reveals 'Wheel of Fortune' retirement: 'The end is near' - New York Post

'+ timeFormatter(data.onToday[currentShowIndex].start_utc) +'-'+ timeFormatter(data.onToday[currentShowIndex].end_utc) +'

'+ data.onToday[currentShowIndex].program.name +'

'+ timeFormatter(data.onToday[currentShowIndex].start_utc) +'-'+ timeFormatter(data.onToday[currentShowIndex].end_utc) +'

'+ data.onToday[currentShowIndex + 1].program.name +'

'+ timeFormatter(data.onToday[currentShowIndex + 1].start_utc) +'-'+ timeFormatter(data.onToday[currentShowIndex + 1].end_utc) +'

'+ data.onToday[currentShowIndex + 1].program.name +'

'+ timeFormatter(data.onToday[currentShowIndex + 1].start_utc) +'-'+ timeFormatter(data.onToday[currentShowIndex + 1].end_utc) +'

'+ data.onToday[currentShowIndex + 2].program.name +'

'+ timeFormatter(data.onToday[currentShowIndex + 2].start_utc) +'-'+ timeFormatter(data.onToday[currentShowIndex + 2].end_utc) +'

'+ data.onToday[currentShowIndex + 2].program.name +'

'+ timeFormatter(data.onToday[currentShowIndex + 2].start_utc) +'-'+ timeFormatter(data.onToday[currentShowIndex + 2].end_utc) +'

Read the original:
FirstEnergy CEO abruptly announces retirement after less than two years on the job - ideastream

Ravens bring two mascots out of retirement to replace injured Poe originally appeared on NBC Sports Washington

The Baltimore Ravens made a pair of big-time signings on Friday.

And no, they didn't involve franchise quarterback Lamar Jackson.

Mascots Edgar and Allan have come out of retirement to fill in for the injured Poe during the 2022 NFL season. The Ravens captured the moment general manager Eric DeCosta re-signed the mascots to season-long deals:

"Physicals look good, wings are in good shape, your claws look sharp. We're happy about that. So that's not gonna be any kind of issue," DeCosta said."You can understand how important that can be to us after what we just went through with Poe."

Edgar and Allan debuted at M&T Bank Stadium in 1998 and retired following the 2008 season. More than a decade later, they'll make their return at Baltimore's home opener against the Miami Dolphins on Sunday.

Washington, D.C., Maryland and Virginia local news, events and information

The Ravens' actual mascot, Poe, was carted off the field after suffering an injury in a game between mascots and a youth football team during halftime of Baltimore's preseason finale versus the Washington Commanders.

Head coach John Harbaugh later announced that Poe, who is a 10-time Pro Bowler, was placed on season-ending injured reserve with a "drumstick" injury.

See original here:
Ravens Bring Two Mascots Out of Retirement to Replace Injured Poe - NBC4 Washington

The tight labor market has contributed to wage gains of greater than 5% a year for the American workforce. But nearly half of employees (44%) say there's a perk they want even more than a bigger paycheck: solid retirement benefits.

Appreciation for company benefits is on the rise, according to the 2022 Global Benefits Attitudes Survey from insurance advisory firm WTW. Three out of five say a good benefits package is a key reason to stick with an employer, a significant jump of 12 percentage points from the last survey, conducted three years ago.

This isnt surprising, says Shane Bartling, senior director for retirement at WTW.

Given the tumult weve seen in the world, people are looking for security, he says. We're seeing the importance of retirement benefits jump to levels I haven't seen before in my career.

Rampant inflation, currently running at 8.5% on an annualized basis, weighs on workers minds when it comes to retirement considerations, as highly visible reminders like gas station prices keep the issue front and center in Americans minds.

People are acutely worried about how higher prices will impact their ability to maintain their desired standard of living in retirement. Close to one-third of workers think they will have to remain in the labor pool past age 70 or doubt they will be able to retire at all, WTW found.

This crisis of confidence in retirement security comes as defined-contribution plans have all but replaced defined-benefit plans, or pensions, in the private sector. In 2020, 3% of private-sector workers had only a defined-benefit retirement plan, according to the Bureau of Labor Statistics. (An additional 12% have access to a combination of defined-benefit and defined-contribution retirement plans.)

With a Reverse Mortgage, you can invest in your future starting today

American Advisors Group can help you get the best terms out of your Reverse Mortgage loan. Find out more by clicking below.

For job seekers, finding out if a prospective employer has a decent retirement plan isnt always simple. Many job applications mention a 401(k) or similar defined-contribution plan, but it might take some legwork to glean enough info to accurately evaluate a companys benefit offering.

If youre considering a new job and youve reached the interview stage, Glassdoor career trends expert Tyler Murphy advises asking a few questions about the retirement benefits. While many companies outline these benefits in the job description, its important to ask benefits-related questions during the interview process, he says.

Use online platforms to find out more: If you have connections to current or former employees through LinkedIn, reach out or ask a mutual acquaintance for an introduction. Search job-review sites like Glassdoor for reviews that mention retirement benefits by using keywords like contribution, match or 401(k).

Its also important to consider the retirement plan in the context of the entire compensation package, career experts say. Employers are excited about talking about the types of benefit programs they offer, Bartling says.

Along with the retirement plan, there might be other benefits such as health savings account contribution-matching, tuition reimbursement and other programs that can help you save for the future in other ways. When a company is is eager to have you on board, it will likely jump at the chance to enumerate.

The interview process is always a courtship process, Carvajal says.

Thinking about retirement, but not sure when's the right time?

A Financial Advisor can help you get your finances in order and plan for the future. Click below to get started.

Career and recruitment efforts say there are a few questions you can ask that will help you get a sense of how highly an employer prioritizes the retirement benefits it offers its workers.

They might only enroll people at a certain point of the month or quarter, says Dave Carvajal, CEO of recruitment firm Dave Partners. While probably not a dealbreaker, an extra-long waiting period (think several months) could be a sign that the plan is more bare-bones than others.

Ask for the percentage or formula for any contribution matches. Thats an easy number that reveals a lot. That match is a good proxy for how generous the employer is, says Marc Cenedella, founder and CEO of Leet Resumes. Cenedella says a 2% or 3% match is the middle of the road, and 6% is terrific, especially if contributions are matched at 100%.

Sometimes its a whole year before you can start getting the match, Carvajal notes. If youre hoping to play catch-up on your retirement savings, make sure you account for that delay in your calculations.

Job seekers can certainly ask if there are socially responsible funds available, what is the default fund strategy, and are there various tax options available within the benefits, says Amy Polunsky, global benefits director at Indeed. The answer you get about ESG, in particular, is a window into how that company integrates its values into its operations.

byte Invisible Braces over 200,000 confident smiles can't be wrong!

With byte's doctor-directed treatment, you can get straight teeth with convenience and discretion. Get started today for $70 or less per month.

Owning a Car Costs More Than Ever, and These Brands Are Seeing the Biggest Price Increases

Stocks Are on a Winning Streak, and Experts Say the Rally Could Continue

The Postal Service Wants to Hike Prices for the Holiday Season

See the rest here:
Why Good Retirement Benefits Are a Lot More Important to Workers Today - Money

Inflation is driving the cost of living up rapidly these days, but it's pretty much always a concern, especially for retirees on a fixed income.

Moving to a more affordable area is one way to stretch your savings further if you're not too attached to your current home. You might really want to think about it if you live in one of the 10 states listed below.

Image source: Getty Images.

The following 10 states have the highest cost of living as of the first quarter of 2022, according to the Missouri Economic Research and Information Center. Each is shown alongside its index score, with the national average being 100. A higher number indicates a more expensive state. For example, an index score of 110 means a place is 10% more expensive than the national average.

The District of Columbia is also pretty expensive. Its index score of 158.8 was second only to Hawaii.

It's worth noting these are averages for the entire state. It's possible that some areas of these states are not that much more expensive to live in than the national average. It's also possible that some areas have an even higher cost of living than these averages suggest.

If you don't plan to live or retire in one of these states, you might be able to save less for retirement, but this isn't a guarantee. Likewise, retiring in one of these expensive states might not cost as much as you fear. But regardless, it's important to have a realistic idea about how much your basic retirement expenses will cost.

Those who plan to retire in their current city probably already have a good idea about average costs in the area. But if you plan to retire elsewhere, you need to get a sense of how much everyday expenses, like food, housing, and healthcare, stack up in your retirement destination compared to your current residence. Make sure you're basing your estimated retirement expenses around the costs where you plan to spend retirement.

Prioritize your retirement savings right now, too. You might feel that you have plenty of time left to save, but the longer you put off saving for retirement, the more difficult your task becomes. Once you have an idea of how much you plan to spend every year in retirement, it shouldn't be too tough to figure out how much you need to save.

If you're worried about retirement costs but you don't want to move, there are other things you can do to keep costs down. You could consider moving to a more affordable area within your state or downsizing your home. However, downsizing may not save you much money if housing costs have risen significantly in your area since you purchased your home.

You might also be able to reduce costs in retirement by shopping around before you buy things, relying upon senior discounts where you can find them, and devising a monthly budget and some sort of tracking system to hold yourself accountable.

Everyone's retirement looks different, so it's tough to say exactly what will work best for you. Be open and consider all your options. And don't wait until you're ready to retire before you begin thinking seriously about all of this. The sooner you begin planning, the better chance you have of retiring comfortably.

Here is the original post:
Tight Retirement Budget? Don't Retire in These 10 States With a High Cost of Living - The Motley Fool

Editorial IndependenceWe want to help you make more informed decisions. Some links on this page clearly marked may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

U.S. credit card debt declined during the pandemic, as people were generally staying home and spending less money. But as the world ramped up again, revolving debt started increasing throughout the second half of 2021 and the first half of 2022.

Its easy to see why credit card spending is up, with a volatile stock market and record high inflation over the past year. Many are wondering what options are available to pay down credit cards.

We spoke with two financial experts on why its probably not a good idea to pull from your retirement account to pay off credit card debt, as well as what alternatives you should consider.

Because of the notoriously high interest on credit cards, its easy to feel like your balance isnt shrinking when youre only making the minimum payment. And while a lump sum payment can be far more effective, it requires money that many people simply dont have on hand. For that reason, consumers may find themselves turning to the money in their retirement accounts.

Generally speaking, financial experts agree that its not wise to pull from your retirement account to pay off debt, even if you have high-interest debt like credit cards.

Tapping into some retirement accounts early can leave you with a nasty tax bill and often a penalty on top of taxes, which will put you in an even tougher situation if you dont have the liquidity to pay off the debt without it, said Lauren Anastasio, a CFP and the Director of Financial Advice at Stash, a financial tech company.

First, assuming the money is in a pre-tax retirement account like a traditional IRA or 401(k) plan, youll be on the hook for income taxes for any money you withdraw. Depending on your annual income, the tax rate could range from 10% to 37%, which is excessively steep.

And because the money in your retirement accounts is meant to be used for retirement, theres an additional 10% penalty on early withdrawals. Between those taxes and penalties, a significant portion of what you withdraw will end up going directly to the IRS.

Most importantly, it can have a significant impact later in life when you are older, not working, and need to rely on those funds, said Paramita Pal, the head of US Bankcard at TD Bank.

Once you withdraw the money from your retirement account, you stop your portfolio from growing and compounding to build your retirement account. Unfortunately, you could find yourself with a shortfall during retirement as a result.

Consider this: Withdrawing $10,000 from a retirement account could help you eliminate your credit card debt in one fell swoop. But if you keep that money in your retirement account and dont add one single more dollar, with a conservative estimate of 8% annual return in the market, it would be worth more than $100,000 after 30 years thanks to compound interest. Thats the beauty of not touching your investments.

Credit card debt can feel unmanageable, but you may have more options than you think. Consider using a debt snowball or debt avalanche calculator to see just how quickly you could pay off your debt if you allocated your excess disposable income to it each month.

Its understandable that many credit card users want to maintain their credit score and, therefore, may panic during financial hardships if they find themselves in debt, Pal said. But instead of tapping their nest egg for funds, I advise looking into alternatives.

The first option available to tackle your credit card debt is to simply use your excess monthly income to pay off as much as you can. This option wont have quite the impact of a lump sum payment, but slowly and steadily, your debt will decrease. And using a debt payoff strategy such as the debt snowball or debt avalanche can help you jumpstart the process.

Even if you want to tackle your debt a bit more aggressively, there are still other options available.

One alternative solution is to seek out credit cards that offer strong balance transfer benefits, such as waiving balance transfer fees or not charging interest on the transferred sum for an extended period, Pal said.

These credit cards often offer 0% interest for anywhere from 12 to 18 months, meaning all of your payments are going toward your principal balance instead of interest. However, its important to make a plan to pay off the debt before the introductory APR ends, or else you risk getting stuck with a high interest rate (and possibly even retroactive interest charges).

Another alternative to using your retirement account is taking out a debt consolidation loan. Its technically a personal loan, meaning its unsecured, just like your credit cards. However, it allows you to pay off several credit cards and consolidate your debt into a single balance and single monthly payment. And often, you can land a lower interest rate.

While it can be tempting to use the money in your retirement accounts to pay off debt especially if theres a large amount in there experts advise against it. Not only could you find yourself on the hook for significant taxes and penalties, but youre also robbing your future self, potentially putting your retirement at risk.

As you look for solutions to your credit card debt, its also important to address the root cause that got you into your current situation. Sometimes debt is unavoidable, such as in a financial emergency. However, if racking up credit card debt seems to be an ongoing problem, consider creating a budget to decrease your spending to change course.

Creating a budget and sticking to it is key, Pal said. There are many digital tools available to help consumers manage their spending and identify areas where they typically overspend and can cut back.

Read more:
Pulling From Your Retirement Accounts Should Be Your Last Resort When Paying Debt. What to Do Instead - NextAdvisor