As financial advisors, we have seen so many people make the same mistakes when it comes to their retirement. We want to help you avoid these mistakes so that you can feel confident when the time comes to retire. We will work with you to create the best retirement plan for your financial situation.
4 Retirement Planning Mistakes to Avoid
Make sure that you avoid these common mistakes while you are doing your retirement planning.
1. Didn’t Start Early Enough
If you have not started your retirement planning, begin planning now. Investments that you make into your retirement plan tend to grow exponentially, so the more time that they have to grow the better off you will be when it is time to retire. If you begin saving in your 20’s, you may only really need to save about 10% of your paycheck to have a comfortable retirement. If you begin saving in your 40’s, you may need to save 30-40% of your paycheck to have enough to retire. When you begin saving earlier, you can live more comfortably while you are working and during your retirement. Even if you do begin your retirement planning later on, a financial advisor can still help you figure out the right financial plan to help you reach your retirement goals.
2. Don’t Know How Much They Actually Need for Retirement
Many individuals do not realize how much money they will need by the time that they retire. If you are unaware of your financial goals for retirement, it is going to be difficult to create a plan to reach that goal. It is important to discuss your needs with your financial advisor, so you can begin to create the right retirement plan.
3. Don’t Consider Health Care Costs
Unfortunately, during retirement, health care will cost more. It is important to have a substantial amount set aside for your health care costs. It is also important to create a long-term care plan, for when you may need home health care or move into an assisted living community. These are extremely important costs that need to be considered while creating a retirement plan.
4. Not Paying Attention to Their Retirement Plan
Often, people put their money in their retirement and they don’t pay attention to their investments. Even if you don’t always have the time to pay attention to your retirement, you should have a financial advisor that will take the time and energy to pay attention to your investments and contact you when they feel that changes need to be made to your retirement plan.
Talking About Retirement Planning With a Financial Advisor
It is always a good idea to talk to a financial advisor about your finances and your retirement. We can help you create goals for your retirement and will work with you to create a plan to help you reach those goals. We will always be available to answer any of your questions and help you to avoid common mistakes we see people make when it comes to their retirement.