Are you ready for retirement?
Here is a known fact: even if you are young, you need to be saving NOW for your retirement.
Instead of telling you what to do, here are some of the biggest mistakes you should avoid to prevent derailment of your retirement and retirement planning.
Mistake #1: Wait To Start a Retirement Plan
When you begin a job is when you need to begin to save. The later you start the less you will save. One of the benefits to saving into your retirement account is that it gives you a break at tax time.
Mistake #2: Neglect The Benefits Of Savings Plans at your Work
Contributing to your retirement account at work and having a portion of your income deducted before you see your pay check is the best way to save for retirement.
Mistake #3: Disregarding Higher Health Care Costs
Unfortunately, one of the overlooked parts of retirement planning is what we might face in health care costs and the income needed for these costs. Overlooking this large outlay of funds could strap your cash in your most needy years.
Mistake #4: No Long-Term Care Plan
According to the US Department of Health, 70% of people over 65 will require long-term care at some point in their lives. It’s important to purchase a long-term care plan.
Mistake #5: Not Understanding The Risks
Stocks are risky and taking on too much risk in your retirement planning could be devastating. You might end up losing a huge chunk of your life savings. Taking too little risk means your savings may not grow enough for a comfortable retirement.
Mistake #6: Cashing Out Early
People tend to cash out their money due to a financial problem or other emergency. Along with that, you will have to pay a hefty penalty. A word of advice here; even if you only have a few thousand dollars in your account, don’t cash it out when you leave your job. Do a rollover, a direct transfer from one 401(k) to another, or to an IRA.
Mistake #7: Relying on Social Security
Here’s disaster waiting for a place to happen. Relying on Social Security to keep you solvent in your golden years? Right! Don’t make Social Security be your main source of income during retirement.
Would you like a smooth path to retirement without derailment? Give us a call.