4 Retirement Pitfalls and How to Avoid Them
Retirement pitfalls can throw a wrench in your plans and cause distress during retirement. In this article, we will review what 4 of these retirement pitfalls are and how you can avoid them.
1. Not Planning for Long Term Care
Many people do not realize that Medicare does not provide coverage for long term care. Such care can cost thousands of dollars every month and quickly spend down your nest egg. One way to avoid this is with long term care insurance. This insurance can cover nursing home care, assisted living, and home health care. By providing yourself with coverage you can save your funds for yourself and your beneficiaries. There are also estate planning strategies you can implement to help you qualify for Medicaid coverage from the state.
2. Failing to Factor in Inflation
Inflation can greatly reduce the spending power of your retirement assets. When calculating what you need to save, it is important to factor in inflation throughout the years. A Certified Financial Planner can help you calculate this properly so you can be fully covered during your retirement.
3. Setting and Forgetting Your Investments
Setting and forgetting is the process of initially setting up your investments, but failing to monitor them and make regular changes. It is important to periodically review and adjust your investments and withdrawals. Doing so will help you make the most of your nest egg. If you feel lost and not sure how to do so, hire an RIA that can monitor your investments for you. Their professional expertise can greatly increase the success of your retirement.
4. Failing to Prepare for Surprise Expenses
You will want to make sure your retirement has wiggle room built in for large, unexpected expenses. This could include things like replacing a roof or air conditioning unit or large medical expenses. Failing to plan for these type of expenses can leave your nest egg to fall short of your needs.
Having a Successful Retirement
Having a successful retirement is possible if you plan ahead for these 4 retirement pitfalls. Enlist the help of financial professionals to make this plan even more successful. Their expertise can point out potential issues and help you plan ahead for them.
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