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Hey Run The Money Fans — we have a contributed post here today. It’s for informational purposes only, so check with a financial professional before making any decisions with your money. Enjoy!
Retirement is a bittersweet time. It’s the acceptance that life has taken its toll on you and that you’re ready to slow your life down so you can enjoy the remaining lifespan you have in peace. But like many things in life, it’s completely possible to make mistakes during the planning of this important time in your life.
Contrary to popular belief, retirement isn’t just about sitting in your chair relaxing with a glass of wine and a book. Retirement is surprisingly complicated and there are many different costs and factors involved that cannot be ignored. To give you an idea of how difficult retirement can be, here are some of the financial mistakes people make during their retirement planning that could ultimately ruin their chances of peace and quiet during their golden years. If you don’t want to be working and exhausting yourself during those later years, then you’d be wise to listen to this advice.
Forgetting about inflation
Inflation may not have concerned you in the past, but it’s incredibly important to focus on inflation as a problem in the future. Over the many years that you save money, inflation is going to devalue the money you’ve left in your bank account and you’ll be left with far fewer funds than you would’ve imagined. To combat this, try and find better ways to save your money such as resorting to retirement investment planning. It’s important to finally give your wealth a purpose to serve instead of just hoarding it in a bank account to rot.
Not hiring a financial advisor
A financial advisor is going to offer you all the help that you need to get off the ground and start taking control of your retirement situation. Financial advisors understand how retirement works and they’ll offer plenty of fantastic advice in regards to your income, your current retirement plan and even the future. If you want a stress-free way of handling your financial situation for your retirement, then make sure you
Failing to save enough money
Let’s be honest—how much money have you actually saved for your retirement? Usually, it’s not enough to just have your retirement plan pay you a weekly or monthly sum of cash. Most of the time, you’re going to need extra savings to cover things like food expenses, bills and also emergency costs. Make sure you save enough money for your retirement so that you’re not left in a problematic situation in the future where you’re out of emergency funds.
Neglecting health care costs
You also can’t forget about healthcare costs. In some situations, you may be expected to pay for medical care out of your own pocket due to inflation or other circumstances, such as your employer cutting their retiree health coverage. It’s important to keep these situations in mind because you may end up spending more than you’d think on medical bills.
As you can see, the financial side of retirement should not be taken lightly and will require plenty of dedication in order to conquer.