10 Mistakes You Want To Avoid In Retirement –Part 1
All your working years, you think and talk about the future when you will no longer be required to put in long hours at work. Unfortunately, these years that should be designated as your “golden years” are often times of financial stress due to being ill prepared for retirement. By avoiding some common financial mistakes you can help make sure you are retirement ready, so you can retire with financial security.
Age Should Not Determine Retirement Readiness
One of the biggest mistakes people make is setting an age for retirement. People are well known for saying, “when I hit 65, I’m done working.” While this is great, and I hope sincerely that it works out for them, many unforeseen things can happen during a lifetime to make this dream financially irresponsible. For example, a layoff, forced early retirement due to health complications, or even lack of financial savings due to a tough job market. It is much wiser to sit down with a Redhawk Wealth Advisor to ensure whether you are financially able to retire rather than picking a number and stubbornly sticking to that number.
Don’t Blindly Follow The Financial Retirement Advice Of Family, Get Professional Help From A Wealth Advisor
Another common mistake is listening solely to the financial advice of a family member or friend. While they may very well have planned adequately for their own retirement, it doesn’t mean they have the same needs and sources of income you have at your disposal. A wealth advisor can examine your individual needs to direct you towards a plan that will suit your future.
Don’t Draw From Social Security Earlier Than You Have To For Retirement Income
Some people automatically taking their social security benefits as soon as they are eligible at age 62. However, this can be a big mistake because if you’re life expectancy is longer, you will actually get a lot more in benefits by simply waiting until you are older to start drawing. What people don’t necessarily know, is that the older you are when you start drawing (age 70 for example) the higher your annual income is. If you wait until 70 to collect your annual income is almost double what it is at 62.
Pay Attention To Taxes Regarding Retirement Income
Some people make the mistake of disregarding tax consequences in relationship to their IRA’s and other tax benefiting investments. If you make the mistake of withdrawing money either too early or too late you can end up paying huge tax penalties. I don’t know about you, but unplanned taxes could seriously eat a chunk out of my retirement income. Once again, many problems can be avoided with tax penalties by simply speaking to an advisor before you make a decision that could harm the future of your retirement.
There are so many contributing factors that can either help or hinder your financial future. Your best bet is to speak to a Redhawk Financial Advisor near you to protect yourself from a financial blunder that threatens the security and stability of your retirement and future. Stay tuned for part 2 of 10 mistakes you want to avoid in Retirement.