You’ve worked and saved for years toward financial independence. Whether you hope to retire early, on time or as late as you can, it’s important to consider your future budget. Here are some common planning mistakes that can ruin retirement:
Miscalculating Expenses
Without work, you might find yourself spending more on travel, dining out, hobbies or home improvement. Less often, people overestimate their needs and work longer or sacrifice more than needed. A fiduciary financial planner can help you with the math.
Carrying High-Interest Debt
Paying off debt can free up funds to save for retirement. Why pay interest when you could be earning money on investments? Create a plan to avoid incurring more debt with an emergency fund.
Ignoring Inflation
Prices increase steadily over time—and sometimes, they jump up. Look into high-yield savings or money market accounts and other investments that can help you keep your purchasing power.
Underestimating Health Care Costs
Even with the best diet and exercise habits, illness and injuries are part of life. Learn about Medicare costs and coverage, and if you want to retire before 65, get familiar with private health insurance options. It’s hard to save too much for medical expenses.
Ignoring Long-Term Care Risks
Assisted living and home care cost thousands of dollars a month. Health insurance rarely covers these costs. Consider long-term care insurance, Medicaid planning or other strategies to prepare, especially if chronic illness or dementia runs in your family.
Most people need help to create a financially sound retirement plan. When it comes to health insurance, we’ve got you. We’re happy to answer questions and offer guidance any time.