Financial expert Pete D'Arruda discusses the four common mistakes people make when planning for retirement.
1. Having too much risk in your investment portfolio
- As you approach retirement, the majority of your assets should be safe. As you age you have less time to recover from market losses, therefore it is wise to shift to the ‘retain’ phase of the ‘gain and retain’ strategy.
2. Withdrawing too much too soon from retirement accounts
- Retirees need a level of income they can sustain for the duration of their retirement, which is why it has become a necessity to invest part of a portfolio where you know exactly what you can expect from it in the future.
3. Underestimating daily expenses
- Take the time to analyze all current expenses and adjust them to fit expected lifestyle changes and inflation.
4. Delaying purchase of long term care insurance (LTCI).
- The cost of LTCI is primarily based on your health. For a lower premium, purchase LTCI while you are in good health. The point is to buy it before you need it.
Source: http://www2.nbc17.com/news/2011/nov/29/4-common-mistakes-people-make-when-planning-retire-ar-1657450/
1. Having too much risk in your investment portfolio
- As you approach retirement, the majority of your assets should be safe. As you age you have less time to recover from market losses, therefore it is wise to shift to the ‘retain’ phase of the ‘gain and retain’ strategy.
2. Withdrawing too much too soon from retirement accounts
- Retirees need a level of income they can sustain for the duration of their retirement, which is why it has become a necessity to invest part of a portfolio where you know exactly what you can expect from it in the future.
3. Underestimating daily expenses
- Take the time to analyze all current expenses and adjust them to fit expected lifestyle changes and inflation.
4. Delaying purchase of long term care insurance (LTCI).
- The cost of LTCI is primarily based on your health. For a lower premium, purchase LTCI while you are in good health. The point is to buy it before you need it.
Source: http://www2.nbc17.com/news/2011/nov/29/4-common-mistakes-people-make-when-planning-retire-ar-1657450/
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