According to a research, it has been found
out that one of the biggest reasons behind hiring a financial planner is to
know whether or not people can retire well and if yes, when they can do so. The
very thought of retiring may cause anxiety and you may always feel either
unprepared or overwhelmed with questions and doubts. Given the fact that
majority of Americans spend more time planning their vacations than their
retirement, it is even more important for them to plan their golden years so
that the shadow of death doesn’t chase them to death. In fact, one of the most
crucial dilemmas for all those who are approaching their retirement is to
balance their life that they want to lead today as against the life they want
to lead after retirement. If you too are someone who is about to retire, check
out some of the biggest retirement blunders that you should steer clear of.
out that one of the biggest reasons behind hiring a financial planner is to
know whether or not people can retire well and if yes, when they can do so. The
very thought of retiring may cause anxiety and you may always feel either
unprepared or overwhelmed with questions and doubts. Given the fact that
majority of Americans spend more time planning their vacations than their
retirement, it is even more important for them to plan their golden years so
that the shadow of death doesn’t chase them to death. In fact, one of the most
crucial dilemmas for all those who are approaching their retirement is to
balance their life that they want to lead today as against the life they want
to lead after retirement. If you too are someone who is about to retire, check
out some of the biggest retirement blunders that you should steer clear of.
Mistake No.1: Living life king-size
The most important question that the financial
planners ask their clients is how much income they need to maintain the present
kind of lifestyle post retirement. Majority of the baby boomers aren’t even
aware of this number as they have never spent time calculating. If your
assumption is too low, which is true in most cases, you may fall into a
troublesome situation later on and you may have to make drastic changes. The
usual thumb rule is that you may need at least 80% of your income in
retirement. Retirees spend more on travelling, eating out and entertainment.
Consider all these before you live life like a king and avoid saving money.
planners ask their clients is how much income they need to maintain the present
kind of lifestyle post retirement. Majority of the baby boomers aren’t even
aware of this number as they have never spent time calculating. If your
assumption is too low, which is true in most cases, you may fall into a
troublesome situation later on and you may have to make drastic changes. The
usual thumb rule is that you may need at least 80% of your income in
retirement. Retirees spend more on travelling, eating out and entertainment.
Consider all these before you live life like a king and avoid saving money.
Mistake No. 2:
Not considering soaring medical costs
Not considering soaring medical costs
One of the most overlooked portions of
retirement planning is underestimating the health care costs. Medical costs and
health care prices are gradually spiralling out of control and if you don’t
take the steps to maintain good health conditions and arrange sufficient
coverage on your health insurance policies, you’re soon going to dig your own
grave. You could feel strapped for cash after retirement. Hence, determine your
current health conditions and assess the costs that you may need after
retiring.
retirement planning is underestimating the health care costs. Medical costs and
health care prices are gradually spiralling out of control and if you don’t
take the steps to maintain good health conditions and arrange sufficient
coverage on your health insurance policies, you’re soon going to dig your own
grave. You could feel strapped for cash after retirement. Hence, determine your
current health conditions and assess the costs that you may need after
retiring.
Mistake No. 3: Lack of long term health care plan
Anyone who has been caring for an aged
parent knows very well what toll it takes on their savings. Both your time and
money that you may spend for your parent can have a staggering impact on your
personal financial needs. As per the US Department of Health, 75% of people who
are above 65 will require some kind of health care in their lives. Hence, it is
important to have a long term health insurance plan so that even when you fall
sick, there’s no such financial burden created on the shoulders of your
children. You may sit with an insurance advisor and check out the exact amount
of coverage that you may need to protect your near and dear ones from going
bankrupt.
parent knows very well what toll it takes on their savings. Both your time and
money that you may spend for your parent can have a staggering impact on your
personal financial needs. As per the US Department of Health, 75% of people who
are above 65 will require some kind of health care in their lives. Hence, it is
important to have a long term health insurance plan so that even when you fall
sick, there’s no such financial burden created on the shoulders of your
children. You may sit with an insurance advisor and check out the exact amount
of coverage that you may need to protect your near and dear ones from going
bankrupt.
Hence, if you’re someone who is about to retire,
ensure taking into account the above mentioned blunders before you retire. If
needed, you can hire a financial advisor who can promise to take care of your
finances and maintain a happy and healthy retired life for you.
Anyone who has been looking after for an older mother or father knows very well what cost it requires on their benefits. Both your money that you may invest for your mother or father can have a incredible effect on your personal economical needs.