Holiday Closing Reminder: All F&M Trust offices will be closed Monday, February 18th in observance of Presidents' Day.Show More
Ideally your debt should “retire” before you do. Loans with a high rate of interest and without any tax benefits should be paid off aggressively before your retire, because they can eat into your savings and reduce your standard of living. Any student loans you have outstanding should also be paid off before retiring. Up to 15% of your social security benefits may be garnished if your payments on student loans fall behind.
Speak to an F&M Trust relationship manager for guidance before you withdraw money from an IRA or other retirement plan in a lump sum to pay off debt, especially if you are under age 59½.
Borrowing money after retirement has unique challenges, but there are several methods available to lenders when a borrower is drawing on their personal assets to make installment payments. One option to consider is a home equity line of credit (HELOC) prior to retirement. This type of loan is easier to obtain when the borrower can show a consistent income (such as wages), and can remain unused until needed later, at minimal to no cost. Interest rates on HELOCs are typically variable, so borrowers should keep that in mind, but they can provide needed flexibility and liquidity in retirement.
You are now leaving the F&M Trust website. Links to third-party sites are provided for your convenience. Such sites are not within our control and may not follow the same privacy, security or accessibility standards as ours. F&M Trust neither endorses nor guarantees offerings of the third-party providers, nor is F&M Trust responsible for the security, content or availability of third-party sites, their partners or advertisers.