Whether you just landed your first job or nearing retirement, it’s never too early or too late to plan for your long-term future. Unfortunately, studies show that only about 33 percent of US households have an IRA designed to help save for post-retirement life and less than half of those people have a 401k set up.
Kiplinger.com lists five common financial planning mistakes that you can avoid to help yourself achieve all of your post-retirement goals.
1. Assuming Social Security is part of your plan.
Don’t assume. If Social Security is available, that is added value to your retirement. If it’s not, you’ve already planned ahead so you have what you need for the way you want to live.
2. Neglecting to update beneficiaries
You need to review beneficiaries on all bank and investment accounts as well as insurance policies if you’ve experienced a life change such as marriage, divorce or children.
3. Skipping saving while you’re paying off debt
It’s tempting to put all of your extra money toward paying off debt, but don’t forget to save while you’re doing it. Establish an emergency fund, and then think about expenses such as car repairs, new car savings and pet bills.
4. Replacing financial advisors with family members
Life changes, and so does your financial plan. If the person you’re working with today isn’t right for you, ask for referrals and select the person that best suits you, your family and your financial goals. Unless you have a family member who is an accountant, you should seek outside professional help when it comes to managing your money.
5. Falling victim to a scam
Statistics show that 1 in 5 Americans over the age of 65 have been preyed upon by scammers. Seniors can avoid being taken advantage of by remaining aware of the most common forms of con.