As the leaves change color and the air turns crisp, Halloween reminds us of the spooky and supernatural. But in the spirit of the season, here are some Halloween-themed retirement pitfalls we think could be scarier than ghosts and ghouls and could even haunt your financial future. In this bone-chilling blog post, we’ll shed light on these retirement “horror stories,” and provide you with some tips designed to help you steer clear of them.
1. The Curse of Procrastination
One of the more common retirement pitfalls is procrastination. Delaying your retirement planning could be a terrifying mistake. The longer you wait to save and invest for retirement, the harder it becomes to reach your financial goals. Combat this curse by starting your retirement planning journey today. Time is your most potent ally in building a your retirement nest egg. At Retirement Planners of America, one of our Retirement Planners can help you build a plan to save more for your retirement. Signing up for a complimentary meeting with one our Retirement Planners for your free Retirement Cashflow Plan can help you get the ball rolling.
2. The Debt Demon
Imagine entering retirement carrying a heavy load of debt—a true financial nightmare. To avoid this retirement horror story, focus on paying down high-interest debts like credit cards and loans before you retire. Entering your golden years with minimal debt will help provide a more comfortable and stress-free retirement. We believe when you retire, so should your debt.
3. The Zombie Portfolio
Diversify Retirement Portfolio
Having an investment portfolio that’s as lifeless as a zombie can lead to financial disaster. Diversify your retirement portfolio across different asset classes to reduce risk. At Retirement Planners of America, we regularly review and adjust your portfolio to keep it aligned with your goals. We also believe it is important to have an exit strategy, like our Invest and Protect Strategy, to help protect you from potential downside during market volatility.
4. The Haunting of Inadequate Savings
Inadequate Retirement Savings
Picture this: you’ve reached retirement age, but your savings are far from sufficient to maintain your desired lifestyle. To avoid this chilling scenario, we can help calculate your retirement savings needs and build a plan for you to consistently contribute to your retirement accounts. Take advantage of employer-sponsored retirement plans like 401(k)s and consider additional retirement savings options like IRAs.
5. The Phantom Healthcare Costs
Retirement Healthcare Costs
One of the scariest retirement surprises can be the high cost of healthcare. Our Retirement Planners can help you prepare for this expense by factoring healthcare costs into your retirement budget. We recommend investigating Medicare options, as well as considering supplemental insurance plans (Medigap), and creating a health savings account (HSA) to cover medical expenses.
6. The Ghost of Ignored Estate Planning
Retirement Estate Planning
Dying without a proper estate plan can leave your loved ones with a nightmarish legal mess. Create a will, establish powers of attorney, and designate beneficiaries for your assets. Review and update your estate plan regularly to reflect changes in your circumstances and wishes.
This Halloween, while you indulge in spooky stories and haunted houses, don’t forget to address the real-life horrors that could haunt your retirement. By avoiding common pitfalls and taking proactive steps for your financial future, you could help avoid a financially frightening retirement. Schedule a complimentary appointment with one of our Retirement Planners today to create your free Retirement Cashflow Plan. Face your financial fears head-on with a plan designed to give you retirement treats, not tricks.