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  • Posted October 19, 2022

The Biggest Mistakes Retirees Make With Their Finances

Avoiding financial mistakes is always important, especially since it can save you from hardship and frustration that you might otherwise have to deal with. But when you are retired, it is more important than ever before to make sure that your finances are in order. Most people have their finances together by the time they retire, but they can still sometimes make mistakes that make their retirement more difficult than it has to be according to our certified financial planner.

Not Planning for a Longer Retirement

Even just a decade or two ago, people’s life expectancy wasn’t quite as long as it usually is today. That means that people are living longer than they used to. So, if you are planning your retirement to be shorter, you might end up running out of money while you are still in a good shape and have time to enjoy more of your life.

By planning for a long retirement, you can avoid financial issues and make sure that you are in a financially secure position no matter how long your retirement goes on. Financial planning services is a standard part of our financial advisory services in Connecticut.

Not Creating an Estate Plan

You also want to make sure that your whole estate is in order when you move forward with retirement. This means having a thorough understanding of your assets and debts and what you want to happen with them. A big part of your estate plan should be making sure that you have a will. Not leaving a will for your heirs can make probate a nightmare process.

Some people are intimidated by the thought of writing a will, but it is still a good idea to get one written. Having a will protects your family and ensures your assets go where you want them to go.

Not Using Retirement Savings Accounts

You don’t have to use a retirement-specific savings account in order to save for retirement. However, those accounts are going to help you to save more money and have better financial security in retirement. Retirement savings accounts are designed to be tax protected, so you can save money more effectively and reach your financial goals for retirement. Refusing to use these accounts can lead to you losing money and finding yourself in a bad financial situation. Our certified financial planners can help you with retirement and investment planning services.

Your retirement should be a time of joy and excitement as you get a chance to explore the world around you. But if your finances are not in order, it can be difficult to enjoy your retirement years. Make it a point to prepare for retirement and avoid mistakes so you can have great results.

Did you enjoy reading this article? Here’s more to read: Financial Products That Aren’t Just for the Wealthy

Contact Tenpath Financial Group for certified financial planning services.