Before You Retire: 5 Mistakes To Avoid
Whether you’re 25 or 55, if you don’t have retirement on your radar, you’re going to speed through life and run right into it. I know planning for your retirement can be overwhelming and probably a little bit scary. We get it. But this is what we do. And through the years, we’ve identified five common mistakes people often make before they hit retirement.
Mistake Number One. You don’t have a fully mapped out retirement strategy. Or, maybe you do, but you haven’t updated it in years. You know the saying: If you don’t know where you’re going, how will you know when you get there? Having a strategy can help you know where you’re going IF it’s up to date. With fluctuating markets and possible changes to your situation, we recommend that you review and, if necessary, update your financial strategy at least every three years.
Mistake Number Two. You’re living beyond your means and contributing little or nothing to the savings you’ll need for retirement. A key to good retirement income planning is having a budget and sticking to it.
Mistake Number Three. You act like you will be healthy forever — and therefore may be ignoring the cost of health care in retirement. Or, at the very least, you’re underestimating what those medical costs might be. It’s estimated that a 65-year-old married couple who retired in 2019 will need about $285,000 for health care costs in retirement. That is a lot of money. Does your plan prepare you and your family for those expenses?
Mistake Number Four. You aren’t saving enough to account for inﬂation.
The value of the dollar constantly changes but you probably already know that from your weekly trips to the grocery store. These increases, along with the other potential impacts of inflation, should be factored in when planning your financial future.
Mistake Number Five. You haven’t planned for the possibility of long-term care.
It’s estimated 70% of those age 65 and older will require long-term care at some point in their lives, and the median cost of a private nursing home room is $102,200 a year!
If you identified with one or more of these mistakes, you’re probably not alone! And there are solutions. The first step toward your financial goals is to start thinking about it now.
Maybe the age at which you plan to retire is far away, or maybe it’s closer than you want to admit. It doesn’t matter. The fact is: People are living longer than ever before, which means their savings need to last longer than ever – at least for 20, 30 or possibly even 40 years. Saving and planning for your financial future should be high priorities. Make sure to consult with a financial advisor to create and update your lifelong financial plan.
And if you don’t have a financial advisor or a financial plan. Don’t worry! You can always call us. Our team of financial advisors are available for a quick call or a complimentary no-obligation meeting. Visit us at https://eabuck.com/ to find out more about our financial services.
 Fidelity. August 3, 2020. “How to plan for rising health care costs”
 Genworth. 2020. “Cost of Care Survey”
We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. 902028- 5/21.
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Honolulu HI 96813,
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