How to avoid common mistakes while saving for retirement
SPOKANE, Wash. — There are plenty of factors to consider while planning for retirement, but unforeseen expenses can have a major impact on whether or not you reaches your retirement goal. While these are unavoidable, there are common mistakes you can steer clear of in order to help insure a path to a happy life after work.
According to the financial advisory firm, Noble Capital, one of the most common mistakes people make is investing like they are still young.
As a person ages, it is best to shift your investment strategies from risk-taking investments, to ones that focus on preserving the capital you’ve earned over the years. The change in these types of investment strategies should take place as you enter your mid to late 40s.
Another common mistake is leaving your retirement savings too concentrated in one type of asset, such as stocks. As time goes on, you may be better off moving you investment to more-predictable money making methods. These include things like annuities, live insurance policies, or real estate.
Also, do not forget to be realistic in the income you’ll need once you’re retired. You will want to be sure those savings cover basic needs, as well as they type of lifestyle you hope to maintain in your later years. Do this by estimating your yearly expenses, and don’t forget to include things like future medical care.
Finally, you will want to make sure you have the right kind of annuity. This is the fixed sum of money you can expect to receive for the remainder of your life. Be sure to learn the difference between fixed annuities and variable annuities– and figure out which one works best for you.
COPYRIGHT 2020 BY KXLY. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED.