Money Kevin O'Leary: Here's the age by which you should have your debt paid off

06:11  23 may  2018
06:11  23 may  2018 Source:   cnbc.com

Hefty daycare costs weigh on couple’s ability to plan for the future

  Hefty daycare costs weigh on couple’s ability to plan for the future Hefty daycare costs weigh on couple’s ability to plan for the futureRelated video: Money Monitor: Teaching kids financial literacy [Provided by The Canadian Press] 

Kevin O ' Leary : Here ' s the age when you should have your debt paid off . So start planning as early as possible for how to pay off that debt throughout your life, O ' Leary suggests. That way, you can be financially secure by the time you retire.

"Shark Tank" investor and author Kevin O ' Leary explains how you should plan to pay down your debt and prepare for retirement. When should you aim to have it all paid off ? Age 45, O ' Leary says.

Kevin O'Leary wearing a suit and tie© Provided by CNBC For many people just beginning their careers, retirement seems too far away to start planning.

But in order to retire in your 60s, you need to get started down the right financial path early by saving and minimizing unnecessary debt, according to Kevin O'Leary, an investor on ABC's "Shark Tank" and personal finance author.

"People today don't spend enough time thinking about the future and what they've got to save for when they get old," O'Leary tells CNBC Make It. "It's not easier when you're older to make money — it's easy to make money when you're younger.

"You've got to save it while you're making it — that's the whole idea of financial freedom," says O'Leary.

'Shark Tank' star Kevin O'Leary: New York lawyer whose racist rant went viral is 'an idiot'

  'Shark Tank' star Kevin O'Leary: New York lawyer whose racist rant went viral is 'an idiot' "If that's really how he thinks about people, he doesn't deserve to come back."O'Leary, the entrepreneur and investor who stars on ABC's "Shark Tank," tells CNBC Make It that there "is not damage-control" for any business-owner who goes on a very public racist rant.

"Shark Tank" investor and author Kevin O ' Leary explains how you should plan to pay down your debt and prepare for retirement. When should you aim to have it all paid off ? Age 45, O ' Leary says.

Kevin O ' Leary explains why debt is evil and it' s crucial to be debt -free by the time you hit this milestone. For many people just beginning their careers

That's because your spending, responsibilities and likelihood to take on debt only increase as you get older.

"Think about life," O'Leary explains. "You go to college — student debt. Then, you find someone, you get married, you buy a house, more debt — that's called a mortgage. You have kids, more debt — getting them through school."

a person posing for the camera© Provided by CNBC

So start planning as early as possible for how to pay off that debt throughout your life, O'Leary suggests. That way, you can be financially secure by the time you retire.

When should you aim to have it all paid off? Age 45, O'Leary says.

"The reason I say 45 is the turning point, or in your 40s, is because think about a career: Most careers start in early 20s and end in the mid-60s," O'Leary says. "So, when you're 45 years old, the game is more than half over, and you better be out of debt, because you're going to use the rest of the innings in that game to accrue capital."

How a 34-year-old came to own 8 homes

  How a 34-year-old came to own 8 homes When Paula Pant was 27 years old, she and her future husband Will were paying $400 a month for a single bedroom in a triplex apartment building in Atlanta , sharing a kitchen and bathroom with three other roommates they’d met on Craigslist. Finally, they decided to buy a place of their own, taking about a year cobble together the down payment.But a starter home was not in their future.Instead, they paid $225,000 for the apartment building across the street, which was almost identical to the one where they were already living. When they moved in, their roommates came too.

Business Mogul Kevin O ’ Leary , aka “Mr. Wonderful,” to Serve as Official Brand Ambassador for TigerDirect Business. From a young age , O ’ Leary […] “Second only to eliminating debt , paying off […]

Kevin O ' Leary explains why debt is evil and it' s crucial to be debt -free by the time you hit this milestone.

To plan for retirement and pay down debt, O'Leary and other experts offer these tips.

a man holding a glass of wine next to a body of water© Provided by CNBC

1. Save and invest for the long term

"Always ask yourself if you're buying something: Do I really need this? Is this something I have to have? Most of the time the answer is no. So don't buy it," O'Leary suggests. "Instead, invest the money so you can get to that equilibrium a lot sooner."

Watching your spending can help you avoid credit card debt, which charges notoriously high interest. And, by using that saved money to invest early, you can take advantage of the magic of compounding, and see your money grow while you sleep.

2. Think carefully about a mortgage

All debt is the same. A mortgage, for example, can be leveraged into an appreciating asset, like a house.

"Mortgages are more of a grey area than credit card debt, because real estate can be an investment," O'Leary says.

Still, paying off mortgage debt can have benefits. Self-made millionaire and wealth management expert David Bach says paying off your mortgage early can be a key for successful retirement.

K. Fed’s Lawyer Thinks He Deserves ‘Three Times’ More Child Support From Britney

  K. Fed’s Lawyer Thinks He Deserves ‘Three Times’ More Child Support From Britney Kevin Federline ’s lawyer believes that he deserves “at least three times the amount” of child support that Britney Spears currently pays him. Stars at Court “We gave them ample time and opportunity to settle Kevin’s child support modification increase, and they came back with conditions that are not reasonable,” Federline’s celebrity divorce attorney Mark Vincent Kaplan exclusively told Us Weekly on Tuesday, May 22. “It’s their position that they don’t have to turn over Britney’s financial information, including tax returns, which is required under the California family code. It’s not California celebrity code edition, she has to comply.” He added: “This is the choice they have made, and they will now have to deal with it. We are still open to try and settling this without judicial intervention.” Britney Spears Through the Years According to court documents obtained by The Blast , Federline, 40, filed documents to request more child support from the 36-year-old pop icon on Tuesday. He claims in the docs that he makes “approximately $3,000 per month” as a DJ, which is reportedly less than one percent Spears’ annual income. The former couple, who were married from 2004 to 2007, share sons Sean Preston, 12, and Jayden James, 11. Federline also shares 15-year-old Kori and 13-year-old Kaleb with ex-fiancée Shar Jackson and 6-year-old Jordan and 3-year-old Peyton with wife Victoria Prince .

Kevin O ' Leary : Here ' s the age by which you should have your debt paid off 11:22 AM ET Tue, 22 May 2018 | 01:12. You should aim to have everything paid off , from student loans to credit card debt , by age 45, O ' Leary says.

Kevin O ' Leary : Here ' s the age by which you should have your debt paid off . More than 70 percent of Americans between the age of 56 and 61 were in debt in 2010, according to the study. That number is up 64 percent from 1992.

"I can tell you, having been a financial advisor at Morgan Stanley, my clients who retired at 50 years old, the secret was: They had paid their mortgage off early," Bach tells CNBC Make It. With a 30-year mortgage, make a plan to pay it off in 20, or preferably 15 years, he says. To do that, contribute an extra 20 percent to your monthly mortgage payment, even if it means sacrificing elsewhere in your budget.

Unlike Bach, who says "buying a home is the escalator to wealth in America," O'Leary suggests seriously considering whether or not you should purchase a home in the first place.

"In my opinion, most people in their 20s, or even 30s, have no reason to be taking on that kind of debt," O'Leary says. "Homes don't always gain as much value as you expect — at least not anymore and at least not quickly."

If you do decide to take out a mortgage to own your home, O'Leary agrees that you should pay it off as quickly as possible.

"There's never an incentive to stay in debt. Life is unpredictable," he says. "What happens if you're laid off or incur unexpected expenses elsewhere? Your once-manageable mortgage is suddenly going to seem not so manageable."

Woman stunned to receive 20-year-old bylaw ticket for off-leash dog that wasn't hers

  Woman stunned to receive 20-year-old bylaw ticket for off-leash dog that wasn't hers Woman stunned to receive 20-year-old bylaw ticket for off-leash dog that wasn't hers "At first I thought it was a joke," said Stacy Majchrowski. "Well, no. No, it's real.

SETTINGS. OFF . Kevin O ' Leary explains why debt is evil and it' s crucial to be debt -free by the time you hit this milestone.

You are using an older browser version. Please use a supported version for the best MSN experience. SETTINGS. OFF . Kevin O ' Leary explains why debt is evil and it' s crucial to be debt -free by the time you hit this milestone.

3. Make a monthly strategy to pay off debt

If you already are in debt, commit to a method for paying it off.

Some experts recommend a strategy called the snowball method, which was popularized by "The Total Money Makeover" author Dave Ramsey.

First, write out all of your debts from smallest to largest. Focus on the smallest debt, and funnel as much cash as you can toward that debt to pay it off (while paying the minimum balance on the others.) Then, once the smallest debt is repaid, move on to the second-smallest debt. This strategy's benefit is the motivation of seeing debts disappear one at a time.

Other experts recommend the avalanche method: Start by listing out the interest rates on your debt and focus on paying off the debt with the highest interest rate. This strategy can help you save by minimizing how much you spend in interest payments over time.

4. Don't neglect your 401(k)

If you have a 401(k) retirement plan through your employer, be sure to ask if that employerhas any matching offers. If they do, that means the company is willing to match contributions you make to the account up to a certain amount.

"The company match is literally free money," personal finance author Ramit Sethi writes in, "I Will Teach You To Be Rich."

But one in five people don't contribute enough to get the match, according to data from benefits administrator Alight Solutions. Certified financial planner Eric Roberge says missing out on that opportunity is the biggest mistake Americans are making in saving for retirement.

Don't miss: 'Shark Tank' investor Kevin O'Leary: Here's how to get rich

Like this story? Like CNBC Make It on Facebook!

Disclaimer: CNBC owns the exclusive off-network cable rights to "Shark Tank."

Kevin Durant throws salt on James Harden's wounds after Game 7 .
Kevin Durant and the Golden State Warriors stomped the championship dreams of James Harden and the Houston Rockets into oblivion on Monday night, and afterward, Durant threw a bit of salt on Harden’s fresh wound. After the game, speaking with ESPN Radio, Durant said, “We knew at some point they’d tire out. James dribbled so much each possession, I know at some point he’ll wear down and we were going at him on the defensive side of the ball as well,” per Ramona Shelburne of ESPN. “James dribbled so much each possession…” Whew. That’s a cold burn. It’s not wrong, though. Without Chris Paul to balance the offense and offer a measure of control, Houston went YOLO with Harden at the helm in the second half. The Rockets at one point missed a record 27 straight three-point attempts, Harden kept trying (unsuccessfully) to draw fouls while launching from well behind the arc and Houston ended up blowing an 11-point halftime lead, losing by nine instead. Harden is known for, shall we say, choking under pressure? He seemed to do so once again, and Durant’s comments here highlight the fact that Golden State knew it would have a chance to come back because of that. Though, after what happened in the second half of Game 6, perhaps everyone should have seen this coming.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!