Listing your liabilities in My Game Plan helps refine the recommendations you'll receive to reach your retirement goal.
This step is optional. However, it can be useful if you want to include debt repayment in your retirement planning strategy. For example, you might prioritize paying off your mortgage so you no longer have that debt when you stop working.
Here are the five types of liabilities you can add:
- Personal loan. Includes car loans and any other standard loan taken out for a project.
- Credit card. Enter only the balance due, not the credit limit.
- Mortgage. A loan granted for the purchase of a property.
- Business loan. A loan taken out in your name for business purposes, if you're self-employed or run a sole proprietorship, for example.
- Line of credit. A flexible loan that lets you borrow up to a predetermined limit as needed, with interest charged only on the amount used. Enter only the balance due, not the credit limit.
For each type of debt, enter the balance due, the amount and frequency of repayments, and the interest rate, if you have that information on hand.
Tip
When entering a liability in My Game Plan, link it to an asset you added in the previous section. For example, you can associate a car loan with a vehicle listed among your assets. This helps you better track your net worth!
