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Planning for retirement isn’t easy. Typically, you start planning for it at a young age, but over time the kind of life you lead changes, and with those changes comes new priorities and perspectives. Regardless of when you started planning for retirement, don’t make the mistake of thinking life will be like it is today. Here are the four worst mistakes you can make when planning for retirement.
Mistake #1: You Don’t Work with an Advisor
Many people make the choice to plan their future on their own. While finances are and should be a private matter, an advisor should be consulted in order to make the best decisions for your future. They live and breathe in the world of money and know a thing or two that could really help you later on.
Mistake #2: You Don’t Plan For Medical Necessities
While it can be hard to imagine when you’re young and spry, there are a lot of additional medical necessities as you age. Doctor’s visits become more frequent, the medicine cabinet begins to fill up with prescriptions. When you begin to plan for retirement, it’s absolutely necessary that you consider these added medical necessities. The money that gets you by today may not be enough further down the road.
Mistake #3: You Remain Static
How you prepare and save for retirement should always directly relate and depend on the lifestyle and income you have at any given point in life. If you began saving when you’re younger, you probably did so according to how your income and lifestyle allowed. Over time though, that income and lifestyle has seen many different shifts. When your income increases, so should your savings into your retirement account. Think of it as a percentage of your income that should always be directly inserted into your retirement funds. This way, with any shifts up or down in income, you can make adjustments accordingly.
Mistake #4: You’re Not Fully Aware of All Your Assets
Cars, homes, expensive jewelry—these are all commonly thought of assets, but many retirees aren’t aware that they have much more than that. Planning for retirement is tricky enough as it is, but when you don’t realize that some of your assets are big players in your retirement fund you won’t have a full grasp on your options. One such asset is a life insurance policy. For many people entering their senior years and retirement, life insurance policies (and their premiums) can become more of a burden than a blessing. What many don’t know is that life insurance policies can be sold in a life settlement, providing additional cash to make retirement easier. This money is often used to help pad the retirement fund and ensure a nice quality of life throughout retirement.
If you have a life insurance policy that you no longer want or need, visit our Qualification Calculator to see if you qualify for a life settlement today!