If you have made retirement planning a priority, then congratulations! You've taken the first steps toward a stable financial future. But while you're diligently saving for retirement, remember that there are plenty of missteps you can make along the way. Be aware of these common retirement planning mistakes, so that you're on guard against certain pitfalls that often affect retirees.
Don't forget your contribution deadlines. Opening an IRA is smart step toward valuable tax advantages. But you won't realize those advantages if you forget to fund your IRA before the deadline each year! Always make your annual contributions by April 15 of the following year, so that you can set aside more money for retirement while deferring taxes until later.
Investigate 401(k) fees. When you first established your 401(k) fund, you made selections that matched up with your needs and risk tolerance. But periodically, you should review these selections to make sure they are still in line with your priorities. Take a closer look at expense ratios, in particular. Sometimes it does make sense to choose options with higher expense ratios, but in many cases there are options with lower ratios that will still help you accomplish your goals.
Be careful about reverse mortgages. Sometimes a reverse mortgage is the right choice for retirees, but only under very specific circumstances. In many cases, these arrangements are a big mistake. Before taking such a drastic step, consult with us about other options to fund your retirement.
Don't rush to choose a retirement community. There are some great retirement living options out there, but some of them are unfortunately owned or managed by people who are less than scrupulous. When touring various retirement communities, try not to be swept away by all of the luxuries presented to you by a fast-talking salesman. Often the low sticker price you are quoted does not reflect the true cost of living in the community. Many costs are hidden by maintenance fees, association fees, and so on. Make sure you are aware of all fees associated with the community before moving in.
These are just some of the possible pitfalls you will face in retirement. Sadly, older people are often targets for those who would take advantage of your life savings and desire for stability. Working with a trusted financial advisor can help you develop a safe plan for your future, and avoid mistakes that can cost you significant sums of money. Call our office to schedule an appointment, and we can discuss ways to help you achieve your goals safely.
15171 - 2015/12/10
Carstens Financial Group focuses on providing comprehensive asset management, estate planning and life insurance solutions. Allow us to help you secure your financial future.