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Preparing for a relaxing retirement

For many, the dream of a relaxing retirement is lost because of a lack of savings and unexpected costs in retirement.  That doesn’t have to be the case if you prepare ahead of time with a conservative plan and start saving early for your retirement.  Your relaxing retirement can be a reality.
Where to most people get off track with their retirement planning?
Not starting at a young age saving for retirement. Contributing the most that you can to your 401k at the beginning of your working career is very important to having the dream retirement desired…time is the most important asset anyone has.  Even if you can’t contribute the max when starting out, if you gradually increase it each year, you will be surprised how much more you will have versus waiting even 10 years to start saving for retirement.
What are a couple of things to avoid going into retirement?
First, don’t retire too early unless you have amassed a large enough investment to last beyond your expected lifetime.  Secondly, don’t let your debt continue to build until retirement.  Work to pay as much off it off as possible while still funding your retirement savings.  You don’t want to enter retirement with a large amount of debt especially if it is home equity or credit card debt.
Is there an area that is often overlooked?
Yes, one of the biggest areas to be overlooked is health care.  Costs for could be very high in retirement which is why it is important look at long term care insurance well before achieving retirement age.  It is usually much more affordable the younger you purchase the insurance.  This helps to protect your investments when or if you have extensive expenses.
What is one of the biggest mistakes that people make in planning for retirement?
They don’t put themselves first which means retirement has to be a priority over other life events.  One particular area is funding college educations.  Delaying retirement savings for college funding can be very detrimental to achieving a relaxing retirement.

Posted: 11/4/2014 with 0 comments

Categories: Money Matters, Retirement

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