With our nation’s economy being uncertain, there are many financial decisions that can make or break you during your elder years. Below are several financial mistakes to avoid when planning for your retirement.
- Assuming you will retire at a specific age. There are many factors that can influence the age at which you retire, some of which are not in your control. This is why it is absolutely imperative that you start your retirement planning as soon as possible.
- Relying on the advice of friends and family instead of a professional. Your family and friends may have the best of intentions in giving your financial advice, but the knowledge and experience of a professional cannot be replaced. The earlier you begin creating a retirement plan, the easier it is to ensure your financial future.
- Starting social security too early. The longer you wait to start collecting, the greater your initial annual income.
- Overlooking tax consequences. If you don’t understand the penalties associated with either removing money too early or too late from retirement accounts, you can find yourself paying enormous tax penalties, which can severely affect your retirement.
- Not updating your retirement plan. Many individuals grow increasingly conservative as they approach retirement. However, low-risk bonds don’t provide the long-term potential required to sustain a retirement income for numerous years.
If you are interested in learning more about retirement planning or estate planning, contact The Curran law Firm.
