You’ve been saving for your retirement for decades. Don’t undermine your own plans by making these 5 common mistakes when you retire.
1. First, don’t retire too soon. Lifespans are increasing and many retirees underestimate their life expectancy when calculating the money needed to live on.
2. The second mistake to avoid? Spending too much in the first years. It’s easy to overspend while playing with your newfound freedom, but it can cause shortfalls later in life. Budget accordingly and stick to your plan.
3. The third mistake is underestimating medical expenses - and overestimating Medicare benefits. Avoid surprises by factoring in enough money to supplement Medicare and consider buying added health insurance to fill in any gaps.
4. Another mistake is taking Social Security benefits too early. You can claim benefits at age 62, but the longer you wait, the higher your monthly benefit will be.
5. Lastly, don’t fail to do estate planning. An estate plan and a will maximizes the chances that your wishes will be followed and your assets will go where you dictate.
It’s easy to make mistakes in the beginning stages of retirement - for more information, please give us a call or send us an email today.
Mychal Eagleson, CFP®, ChSNC®, AAMS® is the President of An Exceptional Life Financial, a firm that specializes in financial planning for teachers. He frequently writes and speaks on teacher finance topics and is passionate about helping teachers plan for the future so they can utilize their finances to live exceptional lives. Mychal also serves on the boards of the Financial Planning Association of Greater Indiana as the Director of Public Relations & Social Media and the Pike Township Educational Foundation as the Chair of the Strategic Planning Task Force and a member of the Finance Committeee. To read more of his articles and learn about how you can work with him, visit: www.anexceptionallifefinancial.com