Recent studies have shown that more and more baby boomers and seniors are filing bankruptcy. What's driving this trend? Odd as it might sound, bankruptcy can be a very useful retirement strategy? But you don't have to believe me, let's look at the numbers: Let's say you're about 55 years old and you owe 25 thousand dollars in credit card debt with an interest rate of 24%. If you put $550 a month towards paying off that credit card it's going to take you ten years to completely pay it off and you'll pay those credit card companies more than $65,000.
Now let's take the exact same payments of $550 a month but instead you're going to invest that in a retirement fund earning a modest rate of interest of seven percent.
Do you realized that in that exact same ten years time will earn nearly $100,000 That's nearly $100,000 for retirement, $100,000 for buying a home, or $100,000 for taking care of your family.
The question is whether or not it makes sense to file bankruptcy now I don't see how it couldn't make sense for more information and for detailed advice.
To estimate how much you could potentially save for retirement if you were debt free, please see:
This calculator only provides general estimates of returns and is not meant as specific financial advice or planning.