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Hi, David Catalano here.
Another popular question dentists ask me is, "If I have extra cash flow should I be paying off my credit card debt or invest in my retirement?"
First, credit cards are an excellent short-term debt tool. Where they become a problem is when balances grow and credit cards end up being transformed into long-term, high-interest bearing loans. This is not good. Most people in this situation spend years paying off items they can't even remember purchasing.
My advice is to consolidate that high interest bearing credit card debt with a fixed-rate loan. There are several options that are available to you, varying in length of term. Naturally, the longer the loan term the smaller the monthly payment and the higher the resulting cash flow.
If you look at the question above, it basically asks, "Should I hold off in contributing to investment accounts?". My answer: "No". The cost of delaying your contribution to retirement investing can be astronomical. For example, if a 35 year old contributed $25,000 per year to an investment yielding 9.75% for the next 10 years and then stopped, by the time he was 65 years old that investment would worth $3,048,278. Conversely, if he waited 10 years and then began making his ten annual contributions of $25,000 that same investment would only be worth $1,202,290. A difference of $1,845,988 !!
Are you making the right decision with your money? Are you maximizing the cash flow of your practice? Are you preparing for your future and your retirement?
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I schedule initial client calls with the intent to determine if it makes any sense for us to work together. If it doesn't, I am totally okay with that. My team and I cannot help everyone. I must feel that we can add value to your life before we will accept you as a client. And you must feel the same.
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Thank you and have a great day!
David Catalano Finance Geeks 9000 Keystone Crossing, Suite 630 Indianapolis, IN 46240 317-581-5664 Office, Extension 20 317-581-1812 Fax 317 694-7417 Cellular |