Why A Good Education Is Imperative For Your Retirement Finances
No one questions the conventional wisdom that a good education is important for your professional success, but is that the only role it plays in your financial life? While the right degree and school can help you find a job and climb the ranks in your chosen profession, education also plays a critical role in your retirement readiness. The Math of Retirement: Any solid college degree is going to feature some math education, but it may not be the financially-focused math you need to figure out your post-retirement income needs. Concepts such as the 4 percent rule and the time value of money require specialized mathematical understanding that often comes only with financial education. Limiting debt and creating a budget for post-retirement are also specialized skills that require focused education to master. Another special math skill needed is one that allows you to determine the best time to take Social Security. While you may be able to trigger the benefit at age 62, doing so can permanently cut your payment amount. Depending on your health and life expectancy, it could instead be better to choose a later retirement age.