The average person starts looking ahead toward retirement shortly after they begin working. Some people even take actions to help by putting a plan in place. Is it the right plan? The unfortunate reality is that a number of people planning for retirement aren't going about it the right way. A poor plan is often just as bad as no plan at all. Make sure you aren't making planning mistakes.
No End Game
It's always important to have an end game or ultimate goal. You can save money, aggressively, for a number of years, but if you don't know what your retirement goals are – this is basically useless. Sit down and determine what type of lifestyle you plan to lead once you retire.
Do you want to spend the majority of your time traveling or are you basically just looking to maintain your current lifestyle? While you may never be able to pinpoint an exact dollar amount, you can get a general idea what you will need. Don't start saving and not know what you're saving for.
Failure To Make Lifestyle Changes Early
Have a pressing financial obligation, such as a mortgage you can barely afford or high credit card debt? Make lifestyle changes before you near retirement. Never wait until you reach retirement to start making changes; the earlier the better. Take an expensive mortgage payment, for example. If you're barely covering the payment now, on a fixed income it will be even harder to do.
By this point, you can fall behind on payments or tap into your retirement funds more aggressively than planned. Either scenario leaves you in a vulnerable place, financially. Whether it's not using your credit cards as often or selling your home, take steps to offload high debts long before you reach retirement age.
Avoid These Mistakes
With the assistance of a financial planner, you can avoid these mistakes. Financial planners don't just tell you to save and invest. They look at your current financial situation, goals and other lifestyle factors to tell you exactly how much you need to save and what type of investments to make.
Since planners are experts on a number of different financial matters, they can also help you choose the right insurance products to protect yourself and your family and even how to handle your estate to minimize any tax burdens. A planner ensures all your bases are covered.
It's never too late to get on track. Even if you aren't far from the age of retirement, a financial planner can still help you reach your goals and better secure your financial future.Share
14 June 2016
My name is Eva, and I have been a personal investment adviser for the past 15 years. I have helped many clients wisely invest their money, and I want to give you some tips I have picked up along the way. Many people discount the use of CDs in investments, and I believe that this is a mistake. Financial professionals agree that CD rates are going to rise, and you can take advantage of that now. This blog will tell you how to find CDs with the best rates, how to build a CD ladder for investment purposes, and why CDs can be better than a savings account.