There is a lot of uncertainty surrounding your retirement years. The last thing you want is to plan based on facts that aren’t true. Here are some common retirement myths to keep your eyes open for.
Myth #1: Stocks are not good investments for retirees
Retirees often think that they need to decrease their risk with their investments. So, to avoid risk, they don’t invest in stocks, when actually, they do not have to worry. As long as they have a balanced portfolio and are smart with their investments, stocks can be a great investment for retirees. We can help you better understand your portfolio and will help you through all the steps of investing.
Myth #2: There is no need to think about healthcare because of Medicare
While Medicare does give you many options when it comes to providers, there are still monthly premiums, deductibles, and copayments you must consider. The cost of Medicare does not stop counting up after your out-of-pocket payments. You may need to get a Medicare Advantage plan or Medicare supplemental insurance.
Myth #3: Your tax bill will disappear in retirement
Your paycheck might be gone, but unfortunately, you still have to pay taxes. People who receive distributions from IRAs, 401(k) accounts, and other retirement accounts often have to make an estimated quarterly payments to avoid penalties from the IRS. Also, if you were in a higher tax bracket while working and now have decent savings for retirement, you will likely find that your tax bracket has not changed.
Myth #4: Social Security will replace your work income
Many retirees rely on their Social Security to afford living expenses. However, Social Security is not supposed to completely replace your work income. Do not rely solely on this source of income. It is important to find other sources of income during your retirement.
Myth #5: You will live in the same place throughout your retirement
After you retire, you may want to stay in the same house. However, you have to consider other factors, such as the cost of living in your area. Can you afford it on your new retirement income? Health costs could also become of factor. If you end up needing assisted living, you may need to move to where that will be easier for you to manage. Even think about your family. How often are you going to want to visit them? If you live too far away, those expenses could add up fast.
FOR MORE INFORMATION REGARDING RETIREMENT MYTHS CONTACT MIRAMONTES CAPITAL.
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Interested in more information? We’ve created a free workshop where you can come in and meet us, spend time getting to know our team, and get all of your retirement questions answered. There are only 20 seats available for each workshop, and they fill up fast! Once they’re full, you will have to wait until the next one, so reserve your spot now by clicking here.
You should leave this workshop feeling confident in what your next steps should be, whether you’re 2 years away from retiring or 6 months.
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Miramontes Capital is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Miramontes Capital and its representatives are properly licensed or exempt from licensure. This blog is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital unless a client service agreement is in place.