Going wrong when planning for retirement is easier than you think. If you want to avoid it, at John Labunski we tell you what the most common mistakes are.
We all know how important it is to save for retirement. But we are not always clear how to do it. The first step is to define what type of withdrawal is desired and how much money will be needed to achieve it.
Then, you have to draw up a financial plan avoiding the most frequent mistakes that are made when planning retirement.
Not having a long-term plan
The best way to plan for your retirement is to do it from a long-term plan. Having a strategy defined for years is important to detect possible obstacles in the future. Thus, you will know how to act when they appear.
Think it’s soon
When should planning begin? Delaying savings is one of the most common mistakes. It’s never too early. In fact, time is one of your greatest allies when planning your retirement.
Not making periodic savings
It is very common to make the mistake of saving sporadically. Consistency is vital in good planning. You must thoroughly review your finances to see how much you can improve the level of savings. And be constant.
The closer retirement is and the less period of time you have saved, the more need to contribute money there will be.
Rescue the money early
We can all have financial emergencies, but resorting to retirement savings to solve them is a serious mistake.
Depending on the amount of money you need and the return you are getting on your investments, it may be interesting to consider financing that emergency instead of withdrawing the money. Evaluate the cost of financing and compare it to see what benefits you and what does not.
Do not take risks
The balance between risk and benefit is a constant for any type of investor or saver. By starting to save early, you can afford to take much more risk because if you do take losses, you can recoup them in the long run. The closer retirement is, the less risk you must assume since you should consolidate already obtained and put it on track for the immediate future.
Posted by: John Labunski Dallas