Retirement will be here before you know it. It may seem like a long way off now if you're in your thirties or forties, but, trust us, it will be. Retirement memes you shouldn't have to worry any longer about working. You should have more financial freedom to do as you'd like. However, that doesn't always happen for everyone. In fact, it's quite the opposite. But if you take charge of your life now and start retirement planning, you may find that you're in a better situation when the time comes to punch the clock for the last time.
Are there things you should avoid doing when it comes to retirement planning? Or, is any effort you make better than doing nothing at all? Let's take a look at the top missteps individuals and couples make as it relates to retirement and estate planning.
Putting It Off
Generally speaking, putting off retirement planning will only take you further from your goal. For example, if you want to have half a million dollars saved for retirement, and you don't start until ten years until you plan to retire, you may come up short. Getting started sooner will allow you more time to save and plan. Don't put off retirement planning simply because you think you're too young. You're never too young to plan for financial freedom.
Forgetting About Estate Planning
Part of retirement planning also should focus on estate planning. No, these are two different things. Estate planning will focus on your end-of-life decisions. This can include who you want to leave your assets to, how you will wrap up your business, and your name beneficiaries. This is something that you should include with retirement planning, just to get it out of the way. You can always revise estate planning documents like wills, revocable trust, power of attorney, and more.
Not Saving Enough
How much money have you put back for retirement? Are you living by the seat of your pants, not really thinking about savings? This is all wrong. Not saving any money for retirement may put you in a huge predicament. How will you pay for medical care? Are you relying solely on Medicare to cover you? What you may find out is that medical costs aren't always covered. You may have to pay out-of-pocket. Those that have no money saved will find that it can be detrimental to their financial resources.
Retirement planning should include putting money back in a 401k if applicable, creating a savings plan, talking to an investment advisor, and really considering what type of retirement you want to be living. Don't forget estate planning should also be thrown in and discussed with your attorney.