Retirement is a big deal, and it takes a lot of preparation. As you get close to the finish line, here’s what you shouldn’t do.
#1: Disregard Your Budget
Like saving up to make a big purchase, retirement takes careful budgeting. You’ve likely been sticking to a budget for years to make sure you reach your retirement goals. Stay on track!
Budgeting is the best way to keep track of your money and make sure you’re heading in the right direction — your financial goals are just within reach. Budgeting is especially important when you’re close to retirement, because you can make adjustments to be on the right track.
#2: Take Out Money or Benefits Too Early
Your Social Security, 401(k), and other retirement accounts have been building up for a very long time. You’re ready to take the plunge and dive into all of those savings — don’t! At least not yet.
Of course, it will shrink the amount of money you start off retirement with. This will make it likelier for you to outlive your savings during retirement.
On top of that, early withdrawals (before you turn 59) come with penalty fees and income tax, especially for your 401(k). The best thing you can do is just wait.
#3: Take Big Investment Risks
If the stereotype is that only young people play the stock market, there’s a good reason for it. Pre-retirement is not a good time to take a gamble with your savings. If you lose any of it, even a small amount, your retirement plan will likely be thrown completely off track.
If you still want to invest, there’s a better way to do it — diversifying. “Don’t put all of your eggs in one basket,” as the saying goes. That way, you can still earn money, but if one investment fails, you still have other income streams to rely on.
#4: Neglect Your Health
Healthcare is one of the biggest expenses you could face during retirement. It’s easy to let your health take a sideline as you look towards your comfortable future, but doing so may cost you down the line. This is a long process, not a one-time decision, so stay vigilant and motivated to live a long and happy life in retirement.
Downsizing your home is an easy way to get a huge retirement boost. But, doing so too early may make you miss out on great opportunities. You may earn more money from it the longer you wait, and you can even use it as a rental property if you’re able.
Do Retirement Better with Game Changing Benefits
We will work with you through every retirement decision to make sure you’re on the best track. To get started, call Game Changing Benefits at 972-331-1060.