Would you believe that some people prefer not to think about money at all when they think about retirement? Instead, they are thinking about taking trips or not waking up early every day to go to work. But this approach to retirement is bound to lead to disappointment and worse. Financial planning is a critical component of a successful retirement.
Starts at 60 recently published an article, “Three silly money mistakes retirees can make,” that identifies three big mistakes you could be making with your money as a retiree.
- Spending too much, too soon. It can be difficult to fight the urge to spend money when you’ve retired, but spending too much early on in your retirement has severe consequences. Not only does it make your wallet lighter, it also means you don’t get the returns the money could have made for you in the next five, ten or twenty years.
If you’re planning on retiring, plan well in advance. Review your superannuation, pension and savings to create a budget for your retirement. If you’re already retired and spending too much in the early days, see a professional and modify your budget and investments.
- Heeding the investment advice of family and friends. While they may only be trying to help, these folks may not be the best people to ask for financial and investment advice. Be careful what you hear about at the Clubhouse. Seek advice from a financial planner or investment advisor.
- Failing to create a proper estate plan. It’s easier not to think about death and dying, but failing to create an estate plan with the help of a skilled attorney could lead to serious financial and legal difficulties for those you leave behind. Without an estate plan in place, your loved ones may face tax burdens that will eat into any kind of assets you might have wanted to leave them. Also, the cost of straightening out an estate when no will is in place is burdensome, stressful and expensive. Make the appointment now to speak with an estate planning attorney to protect those you love.
Reference: Starts at 60 (September 6, 2016) “Three silly money mistakes retirees can make”