As more Baby Boomers approach their Golden Years they are faced with a plethora of challenges. Especially for those with greater resources, the issues can be formidable. To the extent that these are effectively addressed, the promise of those Golden Years can be more readily achieved with less stress both during and after the transition.
Henceforth the top 10 most common mistakes to avoid:
1. Procrastinating: Often people do not begin their retirement planning until retirement is upon them. Depending on your situation, most experts urge that this process begin no later than 5 years prior; ideally at least 10 years or more before is advisable.
2. Not Considering How Much Retirement Income Will Be Needed: Estimates vary as to how much a person’s or couple’s expenditures will change once they retire. Generally, 75% of current income is a rule of thumb. Obviously this has to be adjusted for factors such as projected mortgage (if any), downsizing of residence, travel, etc.
3. Not Estimating How Long Retirement Income Will Need To Last: You hear it all the time; people are living longer, and hopefully you will be among the growing number of centenarians. Other issues may arise as well, such as the likelihood of needing to provide financial assistance to your parents, children or even siblings. Careful, objective planning and on-going management will be needed to make sure there will be enough income...
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