Retirement may seem a long ways off, but trust us when we say it catches many people off guard. At Cape Cod Wealth Strategies & Insurance Services, LLC we don't want any of our clients to feel the pressure of trying to save up for retirement, which is why we've come up with a shortlist of common pitfalls people make when planning for or are already in retirement.

Retirement Financial Mistakes & How To Avoid Them

  1. Spending Spike. For those who just entered retirement, it can be a joyous experience: you can finally do the things you've always wanted to do. Unfortunately many of these things involve money and it can be quite easy to spend way more than anticipated in the first few years after retirement.

    To avoid this pitfall, it's important to have a long-term financial budget planned out. Don't forget to include costs for travel and hobbies you'd like to pick up. Our financial advisors can help you determine the amount you'll need per year in order to live comfortably.
     
  2. Medical Expenses. Underestimating medical expenses is another common mistake retirees make. Don't assume that a medical emergency won't happen to you.

    Our financial planning company on Cape Cod can help you set up individual health insurance in the event that you need a surgery or suffer a major injury or illness. We strongly recommend talking to us about life insurance plans and policies to protect your loved ones. Don't just rely on Medicare for covering all of your medical costs.
     
  3. Retiring Too Soon. We all want to retire eventually, but keep in mind that retiring too soon may end up depleting your retirement savings too early now that most of us are living longer.

    If you plan on signing up for benefits before age 62, then it's important to talk to our retirement planning company on Cape Cod about adjusting your retirement savings account in order to make this possible. With enough planning, strategy and time our financial advisors will ensure that you retire on time.
     
  4. Not Having a Retirement Plan. According to a Retirement Confidence Survey conducted by the Employee Benefit Research Institute, an estimated 32% of Americans haven't started saving for retirement at all.

    Not having a plan can severely limit your retirement experience, so it's important to sit down with our financial planners on Cape Cod to work our a strategy that works best for you. We'll work with you to plan out your 5, 10, 15, and 25+ year goals and come up with a successful and managable financial plan.
     
  5. Poor Investments. There's nothing worse than retiring and realizing you've invested your hard-earned cash in the wrong places. For some people, they invest too heavily in fixed accounts such as bonds, while others favor a "fast cash" approach and invest heavily in stocks and other volatile investments.

    Talking with our financial advisors on Cape Cod will give you a better sense of what amount of risk is right for you. We will also discuss with you about how to minimize your risk factors and set a diversified portfolio to cover all your investment strategies.

If you are looking to start planning for retirement or to make changes to your current retirement strategy, request a consultation today with our retirement planning company on Cape Cod.