If you're approaching retirement, you're probably already familiar with some common steps to help you save money, including contributing to your retirement savings plans and avoiding early withdrawals or overly conservative investing strategies. In addition to what you should be doing, here are three moves to avoid.
Taking a Set-it-and-Forget-it Approach to Retirement Planning
Retirement planning isn’t a one-time event or static plan. Believing that your retirement plan doesn’t need to be reviewed or updated can be a costly miscalculation. Taking the time to review projections, progress toward your goals, strategies and even your goals, themselves, can help you stay on track for building the future you want.
What happens when your portfolio isn't as retirement-ready as you’d like? Here are some steps you can take:
Investing in the Next Generation Instead of Yourself
Higher education is expensive. Helping the next generation is a noble aspiration, but it shouldn’t come at the expense of your future financial wellness. Withdrawing from your 401(k) without penalty to help cover a college education for someone you know might be tempting, but will you have sufficient funds and time to get your savings back on track?
Not Factoring in the Cost of Aging Parents
Research shows out-of-pocket expenses to care for an aging parent can exceed $140,000 from age 65 until death.1 Even if your parents are relatively healthy now, unexpected falls, illnesses and injuries can happen as they age. Having resources and a financial plan in order can reduce some of the financial strain of caring for an elderly parent.
If anything has changed that could impact the strategy we have set in place, contact the office and we can review if any adjustments are needed.
1) Favreault, Melissa and Dey, Judith. "Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief." Office of the Assistant Secretary for Planning and Evaluation, 30 June 2015,https://aspe.hhs.gov/reports/long-term-services-supports-older-americans-risks-financing-research-brief-0.
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