Retirement Planning – Ten Common Mistakes Baby Boomers Make When Planning For Retirement

39
7792

Simply investing in a retirement plan does not guarantee that you will be financially secure when you retire. A mistake in your retirement planning could mean a lot of trouble for a baby boomer and delay your retirement by years. To ensure you’re in the perfect position to retire when you want to and on your own terms, diligent planning is as essential as it is to avoid the most common pre-retirement planning mistakes people make. baby boomers. If you make these common retirement planning mistakes, you could be heading for trouble.

  1. Don’t forget to take full advantage of your company retirementand invest as much as you can in your company’s retirement plan.
  2. Do not withdraw money from your retirement plan or you will lose a valuable interest that is almost impossible to replace. Some pension plans allow hardship withdrawals and loans, but find out about the loss of interest, penalties and early withdrawal fees that may be involved.
  3. Remember to actively monitor all your investmentsto keep you up to date on deviations and how your investments are performing.
  4. Don’t rely solely on Social Security to ensure your entire retirement income. Add other means of income, such as a company pension plan and personal savings.
  5. Don’t rely on your partner’s retirement plan. The partner with the retirement plan may die or divorce or have a prolonged illness that would ultimately jeopardize the sole spouse’s retirement plans. Make sure each person has a separate pension plan.
  6. Don’t forget to review your retirement plan regularly. Review asset allocation, balances, goals, and more. to get the most out of your retirement plan.
  7. Don’t put all your investments in one stock. Diversify your investments so one failure doesn’t wipe out your entire retirement fund.
  8. Check your broker and financial advisor carefully before entrusting them with your retirement savings. Research credentials and background.
  9. Remember to take your retirement planning seriously. Your retirement plan should be a priority even when you’re young and early in your career. Starting early allows you to set aside a significant investment and may even allow you to retire earlier. Think about the lifestyle you want after you retire and don’t put off planning until all your current commitments have been paid.
  10. Don’t forget to calculate the numbers. There is no fixed formula for determining the amount of money you will need. The amount depends on the lifestyle you want, your current ability to save and your investments. Basically, to generate an income of $50,000 a year during your retirement, you need to accumulate $1 million in the fund.



Source by Anna D. Banks

Comments are closed.