5 Cardinal Sins People Should Steer Clear of When Strategizing for Retirement

Planning for retirement isn’t a process that can be done overnight.  It takes years of calculation and brainstorming.  But even though budgeting for retirement is methodical in nature, people can make costly mistakes along the way.  Missteps need to be circumvented to achieve the greatest possible comfort in retirement.

The Long Road to Retirement Needs Caution:

Multi-Award-Winning Journalist Bob Niedt explains, “Hard work, careful planning, and decades of wealth-building are the foundations of financial security in retirement. There are no shortcuts. How prepared are you? How much money do you really need to retire? These are some of the questions to contemplate as retirement approaches.” Here are a few lapses of judgment that can sabotage happy retirement:

1.    Waiting Till Tomorrow to Start Saving:

Saving is often procrastinated because people have an aversion to self-sacrifice.  Unfortunately, this type of attitude sets savers back in ways that are challenging to recover from.

2.    Neglecting to Be Tax-Efficient:

Building up a nest egg always creates a substantial amount of taxable finances.  It’s imperative to learn the ins and outs of taxation to make the most out of retirement savings.

3.    Making Withdrawals Before Retirement-Age:

By law, early withdrawals from a retirement fund automatically attract fees and penalties.  Unless something catastrophic happens, avoid the temptation to dip into retirement savings prematurely.

4.    Borrowing Excessively Towards the Golden Years:

Debt is something that should be reduced the closer people get to retirement age.  No matter what methods you rely on to budget, aim to be completely debt-free by the time you’re 60 years old.

5.    Planning Without Guidance From an Accountant:

The truth is that retirement planning is a sophisticated and complicated exercise.  It’s impossible to anticipate all potential risks without professional advice from a licensed accountant.

Conclusion:

Managing money is a very delicate responsibility, especially within the context of retirement planning.  Hasty or impulsive decisions can trigger a number of problems that are difficult to rectify. If you like what you just read from our blog, you’ll love the various informative courses, workshops, and events listed on our websites and social media. Whether you’re interested in personal development, health and wellness, bettering your relationships, or the overall improvement of your business, give us a call at 1 (800) 913-0222 to find out how Richard Martinez can help you break past your daily struggles and start soaring in success.