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Don’t Make These Top 4 Retirement Mistakes

Emily 8 de September del 2016 High Life
We all know that it’s better to learn from other people’s mistakes than your own, which is why we’d like to share some of the most common regrets that retirees have in terms of their financial situation. When asked, “if you knew then what you know now, what would you have done differently?”, here’s how they responded.biggest-retirement-mistakes

  1. They would have waited longer to retire
As you get closer to retirement age, it’s natural to want to call it quits and start enjoying your golden years as soon as possible. But retiring early gives you a financial double whammy – you have less income saved because you stopped working sooner, and that money needs to last longer because your retirement will be longer.

  1. They would have adjusted their investment strategy
Young people saving for retirement can afford to take risks with their investments – time is on their side. But once you get into your 50s and especially your 60s, having your money in high-risk, high-yield assets can have devastating consequences. Just remember how many people lost all of their retirement savings in the Great Recession, when stock markets plummeted as much as 40%.

  1. They would have put off taking Social Security
Yes, you can start taking SS when you’re 62, and you can start withdrawing from an IRA at age 59 and a half, but that doesn’t mean it’s a good idea. You need to have a plan with your financial advisor that takes into account your income needs and tax liability before you go pulling money from all these new sources.

  1. They would have had a spending plan
This common regret works two ways: the first is that retirees spend too much early on, enjoying their new freedom, and then are left scrambling later in life; the second is that they are paranoid about overspending, and don’t end up having fun with their retirement when they are young and healthy enough to do so. It’s important to develop a plan that balances financial responsibility and personal enjoyment.

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