Managing debt during your retirement looks different than when you are working full-time. While many retirees don’t have the same type of debt, such as student loans or mortgage, other forms of debt often take their place. For instance, medical bills may increase as we age, and loans such as auto or credit cards can also credit a problem when trying to pay your bills. Our Debt Management Service is designed for retired individuals and their families who are struggling with how to replacing high-interest debt with low-interest loans, which can help reduce costly finance charges. We work closely with you to create a strategy that works with your lifestyle. The program helps you track expenses each month—and identify areas where you can cut back and save.
Debt Management During Retirement
Setting up automatic systems for monthly payments can challenge your budget and make it difficult to stay on track. And, high interest rates and lengthy repayment terms can make it impossible to wipe out debt quickly. Do these types of challenges have you worried about your financial well-being? If so, you’re not alone. The average debt per U.S. household is more than $135K.
|Average debt per U.S. household||Total debt by all U.S. consumers|
|Credit cards (revolving)**||$6,929||$420.22 billion|
|Auto loans||$28,033||$1.27 trillion|
|Student loans||$47,671||$1.44 trillion|
|Any type of debt*||$135,768||$13.51 trillion|
If you fall into any of these categories, don’t be discouraged. It is possible to regain confidence in your financial future. The first step is to create a plan that will help you payoff debt, swap high-interest debt for lower-cost loans—especially credit cards—and focus on paying down these accounts to get ahead of the debt curve.
IRA margin accounts allow trading so the account can be fully invested as well as the ability to trade multiple currencies and multiple currency products, but are subject to the following limitations:
- No cash borrowing (i.e. cannot have a debit balance or short stocks).
- IRA accounts may be opened in any base currency, but when trading in a non-base currency product, a currency trade must be executed first as you cannot borrow currencies.
- Withdrawals are permitted only in USD.*
- No stock or option cross-margining.
- No currency borrowing.
- Futures trading in an IRA margin account is subject to substantially higher margin requirements than in a non-IRA margin account. Margin rates in an IRA margin account may meet or exceed three times the overnight futures margin requirement imposed in a non-IRA margin account.
Customers are advised to consult with their adviser and tax specialist for further details on IRA rules and regulations.
Residents of Canada may not open Individual Retirement Accounts.