7 mistakes to avoid in retirement planning
Rodney Brooks, USA TODAY
It's complicated, this retirement thing.
We keep hearing we need to save more money than we've saved. We're worrying about if we have enough to survive a health care crisis in retirement. And in the middle of all that, we're trying to figure out if we can, indeed, wait a few years before we start taking those Social Security checks like all the financial advisers are telling us.
There's a lot at stake, and most of us can't afford to screw up. So, we talked to financial planners about some of the most frequent mistakes they've seen. Of course, they have seen a lot. Here are the top seven.
1. Are you really going to spend less when you retire? High on the list of financial planner Joe Heider, regional managing principal for Rehmann Financial Group in Westlake, Ohio, is the assumption that you will spend less money in retirement than you do in your working years. The rule of thumb among some financial planners is that most people will spend 80% of what they spend while working — the assumption being that you won't have to pay for that daily commute, that work wardrobe, lunches, etc. But, Heider says that assumption is wrong, especially in the early years.
"Most people, in my opinion, initially after they retire, actually spend more money than when they were working," he says. "When you have a job, you are in your office and you are not spending money. But now you have 24/7 to shop, travel and do all the things people couldn't do before."
To read the entire article from Rodney Brooks, USA TODAY:
http://www.usatoday.com/story/money/columnist/brooks/2013/05/20/retirement-mistakes-401k-pension/2193967/
Inspirational Quotes@Inspire_Us from Twitter:
The most rewarding things you do in life are often the ones that look like they cannot be done. -Arnold Palmer
Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com.
We keep hearing we need to save more money than we've saved. We're worrying about if we have enough to survive a health care crisis in retirement. And in the middle of all that, we're trying to figure out if we can, indeed, wait a few years before we start taking those Social Security checks like all the financial advisers are telling us.
There's a lot at stake, and most of us can't afford to screw up. So, we talked to financial planners about some of the most frequent mistakes they've seen. Of course, they have seen a lot. Here are the top seven.
1. Are you really going to spend less when you retire? High on the list of financial planner Joe Heider, regional managing principal for Rehmann Financial Group in Westlake, Ohio, is the assumption that you will spend less money in retirement than you do in your working years. The rule of thumb among some financial planners is that most people will spend 80% of what they spend while working — the assumption being that you won't have to pay for that daily commute, that work wardrobe, lunches, etc. But, Heider says that assumption is wrong, especially in the early years.
"Most people, in my opinion, initially after they retire, actually spend more money than when they were working," he says. "When you have a job, you are in your office and you are not spending money. But now you have 24/7 to shop, travel and do all the things people couldn't do before."
To read the entire article from Rodney Brooks, USA TODAY:
http://www.usatoday.com/story/money/columnist/brooks/2013/05/20/retirement-mistakes-401k-pension/2193967/
Inspirational Quotes@Inspire_Us from Twitter:
The most rewarding things you do in life are often the ones that look like they cannot be done. -Arnold Palmer
Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com.
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