5 retirement planning mistake to avoid

5 RETIREMENT PLANNING MISTAKES TO AVOID

An early retirement is an enticing option as it gives you time to travel, explore your passions or start a new venture. In order to lead a retirement life free from financial worries, it’s critical to have a retirement plan in place, well in advance. Delaying the planning and execution of a retirement plan could result in dependency on someone else for the post-retirement expenses.


Here are five mistakes to avoid when it comes to retirement planning:


Not having a plan: Start planning for retirement as early as possible. The major reason for having a sound retirement plan at a young age is to provide financial stability and security during your golden years. The plan must take into account your life expectancy, retirement location, intended retirement age, current lifestyle, general health, and current financial needs.


Poor investment planning: Successful retirement planning requires your attention and patience in selecting the appropriate investment plans that will help create the adequate corpus by the time you retire. Making prudent investment decisions before retiring is an important step. Commencing your retirement planning early in life will pay off handsomely when you retire. Choosing the best retirement plan helps in ensuring that you have a financially secure and stress-free retirement.


Choosing the wrong financial advisor: A financial planner can help you with your investments and guide you to maximize your returns. Make sure you avail retirement planning services from a qualified, experienced, and independent financial advisor. 


Neglecting Healthcare Costs: The average retirement age for the standard working class is in their late 50s or early 60s. As you become older, you’re more likely to have lifestyle-related illnesses that may lead to high treatment costs. This could deplete your retirement funds, causing you to run out of money sooner than intended. In order to avoid the same, you should always carry a lifetime renewable health insurance policy to cover all your medical costs.


Carrying debt into retirement:  It’s a bad idea to carry debt into retirement. Within a few years after retirement, a credit card debt or a car loan will deplete all your emergency reserves and retirement savings. Carrying debt into retirement when you don’t have a consistent source of income and only a savings account will make way for a lot of stress. Planning to pay it off as soon as possible, before you retire, is a great approach to ensure the security of your retirement corpus.


It’s vital to plan your finances in retirement. It’s also critical to be aware of your alternatives to secure the assets you’ve worked so hard to accumulate. Financial services firms like EldersWealth can help you plan for an optimal retirement with a tailor-made retirement plan. Start the conversation with our financial experts now to know how to plan for your successful retirement.

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