This Halloween season, you may be thinking about spending time with friends and family and planning fun Halloween events with them. You may not be thinking about all the nuances of your retirement strategy, but when you think about the costs of making mistakes with your retirement, it can spook you!
It’s all too common to make mistakes in retirement. After all, you can only get one shot at it – there are no do-overs, and correcting mistakes can be stressful and could require a lifestyle adjustment, putting you in a tight situation. That’s why it’s important to know some of the most common retirement mistakes so you can look out for them and address them.
Firstly, it’s important to be realistic about your future. To do that, you must take stock of where you’re at financially; look at how much you have saved, how much time you have left to grow your savings, how much you’re able to save from now until your retirement, and how much you’ll really need to cover your monthly or yearly costs.
Based on those basic questions, you can be realistic about your goals and develop a strategy that works specifically for you.
To plan for your retirement successfully, you’ll require a comprehensive and holistic view of your assets and income.
You should know the state of your IRAs, 401(k)s, and other retirement accounts such as how much they contain, what they are invested in, how they are managed, and how much control you have over them. That way, you can rollover accounts that don’t meet your financial needs, cost you high fees, or that are invested in assets that don’t match your risk tolerance.
You should know the state of your other assets, such as your home value, life insurance, or annuity plan. And you should be able to strategize how best to utilize these assets to help you cover costs or address certain risks you may be concerned with.
You should also know your Social Security timeline based on when and how your income from other sources will be structured. You should not have claimed Social Security too early or claimed Social Security at a time you will be receiving a great amount of other income, putting you in an undesirable tax bracket. That way, there is a small chance you won’t be giving yourself too much income in a given year that is subject to taxes, and there is only a small chance of encountering a period where you didn’t provide yourself enough regular income to cover your costs.
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This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.