As you enter your golden years, you want to ensure that you have sufficient financial resources so that you can live comfortably and enjoy your retirement.
As you enter your golden years, you want to ensure that you have sufficient financial resources so that you can live comfortably and enjoy your retirement. Although no one plans to have their funds run dry, medical expenses, long term health care, mortgages, and other unexpected bills can quickly deplete your nest egg.
Most people have legitimate concerns about their financial future, but if you are aware of the most common financial mistakes and learn how to avoid them then you will be better able to protect your assets. Below is some detail on what to look out for and you can get more information on senior friendly services here.
1. Don’t Replace Financial Advisors with a Family Member
Unless you have a family member with a degree in retirement finance or who works as a professional accountant, it is best to trust money matters with licensed and experienced professionals. While there is nothing wrong with asking for financial advice from your loved ones, but you should always verify their suggestions with a financial expert before taking action. It is also important to recognize the potential risk of financial abuse and to take steps to protect yourself.
2. Have a Short-term and Long-term Plan
Surprisingly, only one-third of Australians have created a financial plan to secure their future through their retirement years. Without a sufficient plan, your finances could be negatively impacted in several ways. Firstly, if you lack a realistic outlook of inflation and how it affects future purchasing power then you will likely have insufficient resources for your future care. Secondly, if you lack a plan then you may burn through your nest egg too quickly. Thirdly, if you do not have a plan in place then you won’t be able to take advantage of investment opportunities should they present themselves.
3. Becoming the Victim of Financial Scams
Many people believe they are too intelligent to fall prey to financial scams or simply don’t want to admit that it could happen to them. Unfortunately, in a world of advancing technology, this is becoming even more prevalent and the scams are becoming more sophisticated. Con artists are constantly concocting new schemes to cheat people out of their life savings, and some of their favorite victims are the elderly. If you want to prevent yourself from falling victim to one of these scams, it is important to remain aware of the most common types of cons.
4. Maintaining a Stagnant Portfolio
Any financial expert can tell you the importance and benefits of keeping an updated portfolio. This is even more important for retirees on a fixed income. Any time there is a significant change in your health, lifestyle, or plans; you should review your portfolio and make changes accordingly. It is nearly impossible to anticipate future costs of health care or what medical expenses you will incur. However, if you maintain a healthy outlook and a realistic expectation of the care you will need, you can respond accordingly by adjusting the risk and projected returns of your investments.
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