1. Falling for Scams. Millions of Americans are victims of elder fraud. They will receive constant phone calls from scammers who are trying to obtain financial and personal information. Sometimes they will claim they are from a financial institution. Other times they will say they are trying to provide you with a free offer. If you receive these calls do not reveal your personal information. Instead, call the number on the back of your banking card or go in person to your local bank to follow up on any concerns. If they mention a company name you recognize, still go to that company website and call the number provided.
2. Putting Family Members First. While yes, you want your children and grandchildren to have a secure future think of yourself first. Meet with a financial advisor and see what you are financially able to contribute. Remember you have worked years to obtain your financial wealth. You do not want to end up broke in the years that you should be enjoying your life.
3. Poor tax planning. Depending on the investment accounts you have and liquid cash you obtain, your tax bracket may be different. It is crucial that you meet with a certified public accountant to ensure you will not endure more taxes than needed. It is wise to have your financial advisor and accountant meet to discuss all your financials to make sure nothing was missed.
4. Not thinking about long-term care. Many people do not consider long-term care costs when planning their retirement. This is why it is essential to know that Medicare does not cover the potential costs you can incur during retirement. Speak with a financial advisor to create a plan that will include supplemental insurance rather than paying out of pocket.
5. Increasing Debt. Consult with a financial advisor to create a plan with a retirement date that will allow you to live the retirement you deserve and pay off any debts you currently have. If you retire with high balances you may end up spending thousands of your retirement to pay off interest payments rather than the outstanding balances. By reducing debt you can enjoy more of the money you worked hard to obtain.