Retirement Traps To Avoid
There is no denying that retirement planning is sophisticated, complicated, and ongoing. You must keep updated and educated on the ever-changing tax laws, rule changes, plan provisions, and constant market fluctuations to make adjustments and changes to your plan regularly. Due to all of the complexities of retirement planning, everyone will make some mistakes. The good news is that small mistakes won’t destroy a retirement plan. However, some major traps might. Here are some major retirement traps to avoid
The Absence of a Financial Plan – As you can imagine, this is a no-brainer. However, as obvious as it is, many people do not have a proper plan in place. Absent a properly-designed plan and a successful retirement is nearly impossible.
Not Staying Abreast of Changes – Unfortunately, a successful and rewarding retirement does not automatically happen with just a retirement plan. A retirement plan will not work if it is not constantly monitored and updated based on changes occurring each year.
More Tax-Free Income – The more tax-free income your retirement plan has, the better off you will be! With more revenues needed in the future to pay for the nation’s debt and spending issues, many people feel this will come in the form of higher taxes. The more tax FREE-INCOME your retirement plan HAS, the better off you will be.
Failing to Plan for Health-Related Expenses – Is there anything out there more expensive than health care right now – AND THIS INCLUDES LONG TERM CARE? This is the number one cause of financial ruin in retirement.
Having the Wrong Investment Approach – How the markets work and the market volatility are much different and more severe than in decades past. If you don’t have the proper investment approach to help you achieve growth and protection, your retirement plan could severely hurt.
Getting to and surviving retirement can be like navigating your way through a minefield. In order to survive, you have to be equipped with the right tools, information, knowledge, and education.
This information is not intended to be used as the sole basis for ﬁnancial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Any advice contained in this communication, is not intended or written to be used, and may not be used, for the purpose of (1) avoiding tax-related penalties under the Internal Revenue code, (2) promoting, marketing or recommending to another party any tax-related matters addressed herein. All illustration provided are for illustrative purposes and are not intended to guarantee any future results.