Retirement – when you get to be a kid again! It’s what you spend your entire adult life working towards, and many of us put off pursuing our personal hopes, hobbies, and endeavors until we get to this phase.
We believe that if we work hard enough, if we pay our dues and put in the time, we will finally be afforded the freedom to live out those dreams. Maybe it’s traveling, photography, gardening, models, baking, or even just a bucket list of items to try.
But the reality is that it takes a lot of planning and preparation to be fully prepared for retirement. There is more to it than leaving a stable job, paying your usual bills, and finding ways to fill time.
You need to have a plan. And it needs to be thorough.
Here are 5 common retirement mistakes people make that set them back, or even prevent them from reaching their full retirement potential. As you read through these, think about your situation. If you feel any of these apply to you, or you have questions about your retirement plan, please don’t hesitate to reach out to me and my team. We are here to help. Making retirement dreams come true is what we are all about.
- Not saving – this seems like a no-brainer. But what people may not realize is how compound interest works. The sooner you start to save, the more bang for your buck, literally.
- Leaving money on the table – Too often I see people leave jobs before they become vested. This can potentially leave money contributed by the employer on the table. This would be in the form of 401(k) contributions, profit-sharing, or stock options.
- Not maxing out a company match – Typically, companies who offer a 401(k) will match your investment dollar for dollar up to a certain amount (usually a percentage). This is free money that you should take advantage of.
- Not rebalancing your portfolio – Common rule of thumb is to not mess with your investments too much. You should invest and let them do their job. However, as things change (the markets, phases of your life, etc.) you should review your portfolio with an expert to make sure your allocations meet your needs.
- Not planning for healthcare costs – Many people plan for the basics: like residence, transportation, entertainment, etc. However, the average retiree is living longer now than ever before, and that means an increase in healthcare costs. Stay healthy to help decrease healthcare expenses, and make sure you budget for whatever you will need.
This material was prepared by Bill Good Marketing. Bill Good Marketing is not affiliated with Bailey Wealth Services or LPL Financial.
Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.