Learn from the mistakes of others so you don’t follow the same path
With the combined decades of experience in financial planning of the advisors at The Lineweaver Financial Group, we have witnessed mistakes made by people planning for and living out their retirement years. Some of the mistakes are costly emotionally and others have been costly financially.
Today we share some of the mistakes that are common, so you can use this information to evaluate your own situation and ongoing plans. We are not going to look at the rare unlikely mistakes, but rather focus on those we see commonly.
Ignore significant financial drops- Most of our clients have one thing in common. They have enough money to live out a comfortable retirement as long as they don't lose it. Over the years we've taken great pride in helping our clients hold on to what they have.
Forgetting About Income Taxes- Just because we retire does not mean income taxes go away. During retirement income tax planning can be even more critical to preserve the nest egg. Especially with the onset of required retirement plan distributions, it is important to continually evaluate whether to take the minimum or to accelerate withdrawals.
Retiring Early Without Adequate Planning- An early retirement can present exponentially greater challenges to one's savings. Not to say it should not be done, but it is particularly critical that a game plan be developed well ahead of time to help assure there will be enough income to last. Golden years could tarnish very quickly.
Not Estimating How Long Retirement Income Will Need To Last- You hear it all the time; people are living longer, and hopefully you will be among the growing number of centenarians. Other issues may arise as well, such as the likelihood of needing to provide financial assistance to your parents, children or even siblings. Careful, objective planning and on-going management will be needed to make sure there will be enough income.
Not properly naming beneficiaries-Beneficiary structure can be one of the most critically overlooked facts when developing a comprehensive financial plan. Unfortunately, problems with beneficiary designations often aren’t discovered until after an account holder dies, at which point it is too late to make changes. Taxes and family squabbles could be the result of poor planning.
Putting Your Kids Before Your Retirement- Every parent wants what’s best for their kids—but when that comes at the expense of their retirement fund, they may need to find other ways to help.
Approaching Retirement With Outsized Home Costs- Entering retirement with a mortgage isn’t necessarily a bad thing. Entering retirement with a mortgage—or even a home equity loan—you can’t afford, however, is a potential disaster.
Questions or concerns? Contact Lineweaver Financial Group today for a complimentary financial consultation.