You Might Regret These Decisions in Retirement

Retirement

You Might Regret These Decisions in Retirement

Posted by Infinite Wealth Advisors, LLC
3 years ago | November 21, 2016

senior man at helm on sailing boat in seaThe road to retirement can be winding, bumpy, and full of potholes. It can be difficult to know whether you’re ready to retire, or how to plan your distributions so that your money will last for the rest of your life. Obviously, working with a skilled financial advisor can help in those areas. But sometimes we meet clients who have already made serious mistakes, and now they’re trying to both dig themselves out of those holes and plan for retirement at the same time!

The one good thing about these mistakes is that we can use them as examples to teach others which financial pitfalls to avoid. So, avoid making these mistakes now, so that you won’t suffer regret later when you reach retirement.

Don’t relocate without testing the waters. That foreign country or Deep South location with the laid-back lifestyle, low cost of living, and friendly locals might sound terrific right now. It’s tempting to pack your bags the day after you stop working, and make a drastic move to a new location. However, we’ve known retirees who regret their decision, and now have to formulate a new plan (and finance it). Instead of moving as soon as you retire, test the waters by renting a place for a few months.

Falling for risky investment schemes. Unfortunately, there are some very clever con artists out there, who know you’re very interested in quickly growing your retirement fund. But in most cases, “too good to be true” offers end up being… well, untrue. In the worst cases, people have lost their entire retirement funds to fraud. So before investing in the “deal of a lifetime”, consult with us first. We can help you determine whether the opportunity is actually legitimate.

Borrowing from your 401(k). There are other ways to purchase a house or finance a college education. There is only one way to fund your retirement. Repeat this rule if you are ever tempted to borrow from your retirement fund. There is no way to make up for lost time, and nearly everyone who borrows from themselves regrets it later.

Claiming Social Security too early. It’s tempting to claim your Social Security benefits early, but your checks could be reduced by as much as 25 percent for the rest of your life. On the other hand, waiting beyond your full retirement age can net you larger monthly checks. Plan carefully for Social Security, because in most cases it’s difficult or impossible to revoke your claim.

Failing to prepare adequately. Don’t wait until a few months before retirement to begin meeting with a financial advisor. Preparing early, and reviewing those plans often, is the best way to prepare for a stable retirement. Schedule an appointment with us now, and continue to keep in touch over the years, so that we can help you adjust your plans to match your goals.

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