Retire Like an Expert by Avoiding these 5 Mistakes
January 30, 2018 |
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After so many years of working, retirement sounds like a dream. But it’s one that can quickly turn into a nightmare if you aren’t careful. Whether you’re retiring in ten years or tomorrow, there are things you can avoid to ensure you can retire like an expert.
Avoid relying on Social Security or pensions to see you through retirement
As we get older and time keeps moving, things get more expensive. What you once paid a dollar for will soon cost five dollars, and will steadily go higher over time.
So even if your pension and Social Security seem like enough to live on now, your necessities will only continue to get more expensive while this income remains the same.
Make sure you have enough personal savings to make up the difference and to cover you for whatever adventures lie ahead during your retirement. If anything, your pension and Social Security should augment your savings, not be the primary source to cover your costs.
Avoid new debt close to retirement, or forgetting about the debt you already have
If you want to buy a new house to live in when you retire, or a boat to sail the seven seas, or go back to school to earn that degree you’ve always wanted, be careful. Retirement means the end of that paycheck you’re used to and relying on your savings to see you through.
You are more likely to get a better interest rate while you’re still fully employed than when you retire, so you might want to consider making big purchases (like houses and boats) before you retire. It will give you time to pay off some of the debt while you still have regular, reliable income.
And don’t forget about the debt you already have. If you don’t pay that off before you retire, you’ll be carrying those costs with you, and that will eat into your savings. If you have time and can afford it, try to pay off all your debt (or at least all your high-interest debt) before you retire to give you a little extra cushion.
Avoid putting your kids before your retirement
When you dream about your retirement, do you see yourself visiting your kids every so often, or living with them permanently? If it’s the latter, then you can skip this step, but if it’s the former, then make sure you pay attention.
We know you love your kids, and that you want to help them as much as possible, but you need to draw the line somewhere, and that line should be your retirement.
If they ask you to help with college or a down payment on a house, you can definitely help — so long as it doesn’t impact your retirement savings. If you have to tap into those funds to help your kids, they should probably look elsewhere, or rethink their plans.
Your retirement money should be just for that — your retirement.
Avoid missing opportunities to save more
Most companies offer a 401k program you can opt into, and a number of those companies go a step further and offer a matching program. If your company has a 401k program, make sure you are putting as much into it as you can, and if there’s a company match, max that out if you’re able.
It’s basically free money to help you when you retire.
But that doesn’t have to be the only place where you are saving for your retirement. IRAs, CDs, and Money Market accounts are great ways to earn more over time. And if you can find one with a great rate (like the one Dime has), you’ll be golden.
Avoid feeling like your on your own with your retirement
No matter when you plan to retire, you’re never alone. There are plenty of ways to help you save, and just as many people you can turn to for help and advice on the best ways to improve your retirement plan.
Call 1-800-321 DIME (3463) or visit one of our branch locations to speak with a representative about your retirement options. We can help you avoid these five mistakes easily, and get you on track for the retirement of your dreams. Let us know how we can help you today.