The list of things to do once you are post-retirement seems nearly endless, but what about things to avoid? It is very easy to get caught up in enjoying the freedom of retired life and potentially making mistakes you will later regret. You may feel that the strict planning and budgeting phases are all but gone now that you have finally crossed the finish line.
Unfortunately, this is not always so. Not all items on the avoid list will apply to every retiree, but it is a good idea to keep an eye on the focus of each topic to help you stay on track with your goals.
Don't Forget About Taxes
Benjamin Franklin's famous quote puts it rather clearly, "In this world nothing can be said to be certain except death and taxes." It may be difficult to remember the impact of taxes once your working days have ended and you no longer receive a paycheck. Sadly, there are a variety of taxes that will still need to be paid. Property and pension taxes are relatively common, as are taxes on some withdrawals from retirement accounts. Just be sure to factor in all taxes on any income you receive to avoid any costly surprises.
Don't Ignore Estate And Financial Planning Updates
Estate planning and financial planning are not typically once and done affairs. Situations, laws, investment strategies, the state of your finances, and your personal relationships all change over time. Any and all of these factors may necessitate an update to your financial or estate plan. Make sure you avoid waiting until the last minute to make necessary changes. Plans evolve over time and you may be missing out on advantages with financial plans by failing to update with the changes.
Don't Get Pulled In To Risky Investments And Scams
We all know it takes money to make money, but not being careful with your retirement savings will bring you more grief than gold. Scams are rampant, and the retired and elderly are the prime targets due to high success rate. Risky investments are another thing to look out for. All investments carry some risk, but beware of those offering returns that are too good to be true. If you are being rushed into making a decision before you can ask around and consult, chances are it’s a bad idea.
Retirement is a wonderful part of life, so don't cheat yourself out of your happiness by making mistakes that can cripple your savings. Staying active, controlling your spending, and maintaining a healthy social life are all important to getting the best out of life as a retiree. There are no secrets to success, but following some guidelines can keep the worst of potential troubles at bay. For financial, retirement, and estate planning assistance, contact BD Financial Concepts today.
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