Planning ahead and keeping a close eye on your finances are two of the most important ways you can ensure you get to enjoy your retirement and get the most out of your golden years. As we begin 2021, watch out for these costly mistakes in your retirement.
- Forgetting about higher medical expenses. Even though you are eligible for Medicare at age 65, there are still medical premiums, deductibles, co-payments, and other expenses to account for.
- Not accounting for taxes. You’ve been saving for your entire career, but depending on the type of investment account you have, you could still be taxed for every withdrawal you make.
- Overestimating your investing skills. Overconfidence in your ability to read or time the market can easily lead to financial mistakes at a time when you may not be able to afford them.
- Starting your retirement too soon. Downsides include unrealized employment income, loss of employer-sponsored health insurance, and tapping into retirement savings too early.
- Using Social Security benefits too early. You can start taking Social Security at age 62, but you won’t receive your full benefits at that time and you’ll be responsible for the taxes applied to your benefits.
- Not planning for your future. If you don’t plan accordingly, you could miss out on the chance to determine who benefits from your estate. Estate planning allows you to designate beneficiaries and can also significantly reduce federal estate tax liabilities.
- Not keeping up your portfolio. Your retirement portfolio will likely change over time. Re-evaluating the investments in your portfolio can help mitigate risk and keep you on track for your retirement goals.
We want to make sure you’re doing all you can to keep your retirement stress-free and enjoyable. Contact the office at any time if you’d like to discuss further.
Happy New Year!