Statements | Client Login

Don’t Make Rookie Retirement Mistakes!

May 26, 2017

Financial independence is a goal that many people have in life. Working for decades is hard enough, but many people end up making mistakes financially once they retire. Over time, the decisions that you make leading up to the point where you retire are essential to your success. A lot of people end up regretting spending too much money or investing too little once they get to retire. Here are some of the biggest mistakes that people make when they retire, and things that you can do to improve your chances of staying retired.

Investing Too Little

Perhaps the biggest retirement mistake is investing too little throughout your working life. There are a lot of people who want to retire on as little money as possible so they can quit the rat race. However, you need to make sure you have a sizable nest egg for when you decide to retire. There are a lot of people who struggle financially the rest of their life because they did not save enough. In addition, one market swing can wipe out a huge chunk of your portfolio because you did not plan carefully. Always make sure that you run through several financial scenarios before you decide to retire. This is one of the best ways to prevent financial issues later on in life.

Not Budgeting

When living on a fixed income, it is essential to control your expenses. One of the best ways to do this is through budgeting. A lot of people get a false sense of security with how large their financial portfolio is. However, you have to remember that this fund needs to last for the rest of your life. Making small changes in your financial planning can have major positive impacts on the amount of time this money will last. Always make sure that you are planning for the future in any way that you can financially.

Health Issues

Although investments in stocks and bonds are important, you health is even more important than that. A lot of people concentrate too much on their job and their career while they are working. Instead they should be looking for ways to improve their overall health and well-being. Over time, health issues can cost a lot of money if they go without being dealt with. Before you officially retire, you need to make sure you have a health screening to check for anything major. Your investments will not cover a major heart attack or other financial issue later in life. In fact, the number one worry of people who are about to retire is health-related expenses. All of these things can be greatly reduced if you simply start investing in your health today.

Final Thoughts

Overall, retirement is a goal for many people in life. There are a lot of people who want to retire and never have to think about money again again. If this is your plan, you need to be on a strict budgeting plan so that you do not eat into your principle. A lot of people wrongly assume that they will only live for ten or so years after they retire. However, many people end up living for two or three times that span. Over time, this is a major issue that you have to deal with in a variety of ways. Not only do you need to make sure you have the financial support to do this, but you need to have a plan for your health expenses as well.

We are here to answer any questions you have regarding your current plan or the retirement road ahead.

Eric and Jennifer Lahaie
JEHM Wealth & Retirement
864-527-0482

Copyright © 2017 JEHM Wealth and Retirement Strategies

Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor.  JEHM Wealth & Retirement Strategies and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.This information is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that JEHM Wealth & Retirement Strategies and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.

Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Retirement Wealth Advisors.

Back To Top