Wouldn’t it be great if retirement planning was simple? That way, everyone would have all the money they needed to live the retirement of their dreams. Unfortunately, retirement planning in the real world is anything but simple. There are countless investments to choose from, plus considerations to make about tax deferment, medical expenses, estate planning, and more. If you’ve already retired, or you’re getting close to retiring, it pays to do your homework so you can avoid the pitfalls that have devastated the retirement savings of millions of retirees throughout history. At Crash Proof Retirement®, we specialize in retirement planning for people in or near retirement, and here are the 3 biggest mistakes we see people making as they approach retirement age:
Choosing the Wrong Retirement Planner
If you think every retirement planner is the same, think again. Your average financial planner works with people of all age groups, meaning they may not have the same depth of knowledge about the unique challenges people face when they’re in or near retirement. They may be more inclined to chase big gains while eschewing safer investments. If you want to have the best outcomes for yourself and your loved ones in retirement, it’s important to seek out a Retirement Phase Financial Advisor who has dedicated their life to learning about the challenges faced by people as they get closer to retirement.
Investing in Risk
One of the most important differences between a traditional financial advisor and a Retirement Phase Advisor is their propensity to expose their clients to risk. Traditional financial advisors often believe that in order to reap the biggest rewards, you need to take big risks. They’re happy to provide this advice to any client who walks through the door, regardless of their age or situation. They’re more likely to recommend securities-based investments that can be extremely risky for individuals in or near retirement. A traditional financial planner probably won’t even tell you that there are plenty of investments that exist outside the securities industry, investments that can prevent a retiree from losing their nest egg in the event of a stock market crash. Retirement Phase Advisors know that these safe investments are crucial for retirees, and they’re more likely to recommend safe investments even if it means giving up the big commissions and ongoing management fees that traditional retirement planners depend on to stay in business.
Not Planning for Medical and Long Term Care Expenses
The average stay in a long term care facility can be as much as $75,000 to more than $100,000 annually. Treatment for specific conditions can drive those figures up even higher – not to mention the cost of prescription drugs. If your nest egg isn’t big enough to cover those types of expenses, it makes sense to make a plan for them. Don’t assume you can get through retirement without ever needing a long term stay in a hospital or care facility; prepare yourself. Products like long term care insurance can provide you with a safety net should you develop a condition that requires skilled care.
If you’re in or near retirement, it’s important to be aware that retirement planning is different for every age group. While a younger person may have time to rebuild their nest egg after losing money to a market crash, people in or near retirement don’t have the same luxury. If you would like to speak with a Retirement Phase Financial Advisor, get in touch with Crash Proof Retirement® today! Give us a call to find out more about how the Crash Proof Retirement® System can pave the way for you to have a secure financial future in retirement.