Three Mistakes in Retirement
As you age, you may find certain things become more important than others. The most important thing you have is time. How you spend your time makes a difference, particularly when planning for your later years.
These three retirement mistakes are easily avoided if you plan correctly.
1. Not planning for your medical costs or long-term care
Long-term care is not typically covered by Medicare or health insurance. For some Americans, retirement is a time when you typically must deal with more health care issues and costs tend to increase. It’s just a fact of life that as you age your body requires more treatment and care. Health insurance that covers the usual conditions is one thing, but if you have a serious debilitating illness you may require long-term care. Statistics show that someone over the age of 65 today has almost a 70 percent chance of needing some type of long-term care services and support. Women need care longer than men and 20 percent of today’s 65-year-olds will need long-term care for longer than five years.
Inflation is hitting every sector of society. Increased medical costs and long-term care costs could mean your savings will not be sufficient if you are not covered.
2. Not revising your investment strategy
As you age, it’s wise to keep your finger on the pulse of your investments. Find a trusted advisor who knows the options and can give you a better understanding of your finances over time.
The money you have saved and/or invested needs to last you for the rest of your life. Making bad or ill-informed decisions could be catastrophic in your retirement years. “Don’t take risks with your retirement money,” says Douglas Gorecki, Vice President Investments for David Lerner Associates. “Your retirement years need to be financially secure. Planning correctly helps yield results. Adjust your investments over the years, so that you follow the sensible middle ground of investing.”
3. Lack of estate planning
Many Americans believe estate planning is only for wealthy individuals. The word estate is probably the culprit. An estate is not a giant home or a vast portfolio of assets. An estate plan should include a will, a living will, power of attorney, an advance health care directive, and a list of important documents. Estate planning is a vital piece of your retirement planning.
Once you reach the age where you are going to retire, hopefully, you have been able to plan for your later years, so that you can enjoy the rest of the time you have in peace and prosperity.
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