Retirement Planning – Ten Common Mistakes Baby Boomers Make Retirement Planning

Retirement Planning – Ten Common Mistakes Baby Boomers Make Retirement Planning

Investing in a retirement plan alone does not guarantee that you will be financially secure in retirement. One mistake in your retirement planning can cause a baby boomer to run into a lot of problems and set your retirement years back. To ensure you’re in the perfect position to retire when you want and on your own terms, careful planning is just as important as avoiding the most common pre-retirement planning mistakes baby boomers make. If you make these common retirement planning mistakes, you could be heading for trouble.

  1. Be sure to take full advantage of your company retirement benefitsand invest as much as you can afford in your company pension plan.
  2. Don’t withdraw money from your retirement plan or you will lose valuable interest that is almost impossible to replace. Some pension plans do allow hardship and loan withdrawals, but find out about the loss of interest, penalties and early withdrawal fees that may be involved.
  3. Be sure to actively monitor all of your investmentsto be aware of discrepancies and know how well your investments are performing.
  4. Don’t rely on Social Security alone to secure your entire retirement income. Back it up with other means of income, such as a company pension plan and personal savings.
  5. Don’t rely on your partner’s retirement plan. The retirement plan partner may die, divorce, or have a long-term illness that will ultimately compromise the single spouse’s retirement plans. Make sure each person has a separate retirement plan.
  6. Be sure to review your retirement plan regularly. Review asset allocations, balances, goals, and more to get the most out of your retirement plan.
  7. Don’t put all your investments in one stock. Diversify investments so that one failure doesn’t wipe out your entire retirement fund.
  8. Carefully check your broker and your financial advisor before you trust them with your retirement savings. Research Credentials and Records.
  9. Don’t forget to take retirement planning seriously. Your retirement plan should be a priority even when you are young and early in your career. Starting early allows you to hide a large investment and may even allow you to retire early. Think about the lifestyle you want after retirement, and don’t put off planning until you’ve paid off all your current liabilities.
  10. Be sure to understand the numbers. There is no set formula to determine how much money you will need. The amount depends on the lifestyle you want, your current savings and your investments. Roughly speaking, to generate an income of $50,000 a year during your retirement, you need to accumulate $1 million in the fund.

#Retirement #Planning #Ten #Common #Mistakes #Baby #Boomers #Retirement #Planning

Leave a Comment

Your email address will not be published. Required fields are marked *