AboutJohn D Smith, CFP Expertise I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related financial planning/investment issues. I have a B.S. degree in Financial Planning & Counseling. I am also a Certified Financial Planner (CFP) and have performed fee only investment management and financial planning services for the past 11 years.
Question Current ESOP is being distributed. Our income has decreased significantly but of course debt is the same. I have debt I want to payoff but do not want to jeopardize unemployment benefits in case I need them in the future. Of course I would rather rollover into an account for our future. Do you have any solutions?
Answer Whether you choose to pay off debt or not depends on your specific financial situation and what you are trying to accomplish. For this reason, there is no right or wrong anwer that applies to everyone. From purely a financialy standpoint, if you can use the $$ for investments and earn more after tax than the cost of your debts, then this makes sense to do. However, there are other factors to consider so this isn't always the best move for all people. Sorry I could not offer more clear advice. The one point I am confused about is your comment about not wanting to jeapordizing unemployment benefits by paying off debt. Please feel free to expand on this if you would like some thoughts. Thanks.
