With that being said, I have just pointed out to you the door to a happy retirement life.
Many people think they can plan for retirement after they are done with having fun in life. But I tell you that’s the biggest risk they take. Late planning means less money to invest.
So, here are the 4 risks to avoid that could cost you your retirement!
1 Believing you can shift to a frugal lifestyle once you retire:
To tell you the truth, you can’t rely on this thought!
It is very hard to come down to a lower grade lifestyle, after having spent decades of lavish livelihood!
It would mean sacrifices that you can’t even imagine of!
Which means, stashes of money moving out, with only a squeeze-in-through income!
You, therefore, better start keeping money aside from now on!
Your motto should be to rise in life. You should aim for a more financially stable retirement.
In your retirement days, your worries should be where to plan the next summer trip or how to make your 50th wedding anniversary special, instead of worrying about payday loans and credit cards!
2 You can drag on your debts into the retirement days:
This would be the biggest mistake you can think of, and the most dangerous risk you can take.
Life is too short to be spent clearing debts.
Your income will mostly be the interest from your savings, and your social security money won’t be enough to cover your retirement life.
So, start making suitable plans for getting rid of debts now itself.
Make sure that your retirement life goes a headache free and you are able to live life king size!
3 Cashing out your retirement plans when you switch jobs:
This is a silly mistake that many people commit when they switch to a different job. They cash out their previous employer-sponsored retirement plan!
Every time you cash out from a savings plan, you are paying taxes, penalty charges, and are missing out on a steady growth of your investment!
4 You always hope for the best:
Time and God work in the most unexpected ways.
You should always have the worst case scenarios worked beforehand.
Consider these scenarios:
a. What if you or your spouse is diagnosed with a serious illness?
b. What if a severe natural calamity hits your place during your retirement days and you only have limited savings to cope up with the disaster?
c. What if it takes few years for your child to get a job, after he graduates, and he needs to stay with you? Also, if you have to help your child pay off the student loan, as he’s unable to get a job anytime soon?
Those examples were definitely not to scare you. It was just making you understand how life ditches us at times.
So, besides choosing a good retirement investment plan, you should also start growing another savings for your emergency purposes.
In conclusion, I can actually point out many other risks that people often take in their retirement life. That would be time taking and tedious to discuss.
But I can surely tell you one more thing, or rather warn you against one more thing.
Never disclose your account details to any random professional or even your friends and relatives (if they are not too close).
Prevention is always better than cure. No doubt, the worst risk human beings have taken throughout the history of civilization, is trusting someone blindly!