5 Ways To Ruin Your Retirement

Media / Blog

5 Ways To Ruin Your Retirement

Prev

Do Millennials Face “Money Bullying”?

August 05, 2017

One of the worst feelings in the world is to worry about retirement especially after you have retired.  Recently, I sat down with someone who kept telling me they worried about running out of money.   The fear was so real that it was preventing them from even enjoying the few trips and vacations they were taking during retirement.   The reason we plan and track during retirement so often is to ensure that you don’t ruin your retirement.   If you are in your 40’s, 50’s or 60’s and thinking about retiring soon, here are five ways you can ruin your retirement.

  • Carrying Too Much Debt
    • A Large Mortgage (Too Much Refinancing) – While refinancing seems like a no brainer where rates are today, you need to consider looking at a 15-year loan vs. 30-year loan so you don’t carry a mortgage into retirement.  This can be a real problem if you don’t have the same level of income to pay a hefty mortgage.
    • 401(K) Loans – will you be able to pay back?- Also, some people take 401(k) loans to assist their children’s college education. Remember, if you leave your employer, you need to be certain they will still allow you to pay back a 401(k) loan or you will be stuck with a taxable event prior to retirement that will reduce your capital base for retirement.

 

  • Not Checking Your Actual Social Security
    • Double Check To See If Income Was Misreported – I know it seems like this could never happen, but I see this all the time. Especially now that we have more 1099 contractors and people who own their business. Make sure to set up an online account at ssa.gov and check your taxable earning on your Social Security statement.
    • Figure Out The Best Age To Start Collecting – This is a big trickier to figure out, but whether you are single or married, it is smart to figure out whether to take Social Security early, at full retirement age, or wait until 70.

 

  • Taking Too Much Risk
    • What Happens If Your Portfolio Drops 25% In Retirement – Most people work hard on their investments during the accumulation period, but what happens if you take a hit during decumulation period? Can you stomach this in retirement, especially now that the market has been up for so many years in a row.
    • Betting You’ll Get Income From Your Rental Properties – While renting out properties and buying them seem attractive today, what happens if you get another 2008? Can your retirement handle two properties that go empty for six months?

 

  • You Don’t Talk With Your Spouse/Partner
    • You Both Say You Like Biking… (Motorcycles or Bikes)?
    • You Want To Live In The City/They Want To Live At The Beach – For both of these, one way you can kill your retirement is not discussing with your partner or spouse what you will do in retirement. While goal setting on the emotional side can be difficult to do, the worst thing in the world is to have a ton of money but you don’t know what to do with each other…or worse yet you never see each other at all.

 

  • You Don’t Plan For Health Expenses
    • What Happens If You Retire Before The Age Of 65? – If you decide to make work optional before the age of 65, what happens if you need medical care because you have a catastrophic illness and now you don’t carry health insurance? Or, your health insurance is far worse than the one you had at work?
    • What Happens If You Need Long Term Care? – While this isn’t the most pleasant thing in the world to talk about, the cost of nursing home care is skyrocketing. You should consider figuring out your game plan for the potential of needing skilled care at your home or going into a nursing home for a period of time.  Not planning for this has ruined many retirements for spouses and partners because it eats away at your capital base.

Next

5 Ways To Pays For College Without Student Loans

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.