Retirement Mistakes To Avoid While You Can Still Fix It
September 3, 2021 | June Mckaig
Here are some of the top retirement mistakes to avoid when planning for your golden years. Planning for retirement is one of the most important and responsible things you can do in your life. It’s also one of the most neglected aspects of ensuring that your future is comfortable and happy. According to the American College of Financial Services, 67% of Americans have not written out a retirement plan.
Since most experts say you need between $500,000 and $1 million saved up for your years in retirement, it’s vital to start planning early for retirement and plan wisely. Here are common retirement mistakes to look out for and avoid when you can.
Common Retirement Mistakes You Should Start Avoiding
Not Having A Solid Retirement Plan To Begin With
Perhaps the biggest aspect of retirement mistakes to avoid is to not think about your retirement in the first place. While many employers offer 401 (k) plans, as well as pensions, that’s often not enough on its own to support you after retirement.
Look into other plans or supplementary ways to fuel a retirement fund, including opening an IRA or working with a financial planner.
Not Reviewing Your Retirement Plan Frequently
Once you have a good plan in place, another one of the big retirement mistakes to avoid is just leaving it alone. Review it periodically, especially if you receive a raise or come into other forms of income as you get older and make adjustments as needed.
Just Relying On Social Security
While some financial security comes with a reliable social security check, those alone should not be the only thing you rely on when it comes to retirement.
Experts agree that not going beyond social security benefits is one of the top retirement mistakes to avoid. The Social Security Administration notes that social security benefits only represent 39% of the income for older retired people.
Cashing Out Too Early
Dipping into your 401 (k) early is tempting, especially when you’re facing financial emergencies. It’s also one of the top retirement mistakes to avoid. There are major issues connected to depleting your 401 (k) too early, including tax and withdrawal penalties and quickly depleting any type of retirement nest egg you had going. Don’t do it. Cashing out a pension is also not a good move.
Telling Yourself You Will Still Be Able To Work
Americans generally retire in their mid-60s or early 70s, and many tell themselves that they will be able to continue bringing in a steady income through a part-time job even while in retirement. Convincing yourself that this is the case is one of the other huge retirement mistakes to avoid.
You simply have no way to predict if this is true. You could have a medical issue or a spouse or family member could have a medical issue that demands your full-time attention as a caretaker. And while it’s possible that you can still work in retirement, the cash flow will likely not add a tremendous amount to life in retirement.
Having a 401 (k) is great, especially if one is started when you’re young. But not considering other types of investment would be one of the biggest retirement mistakes to avoid.
With the help of a financial adviser, think about how to expand your retirement portfolio through such investments as a mix of bonds and stocks. Think about investing in real estate or art or a reliable business venture. Your financial future is in your hands.
Not Considering Title Loans For Help
Title loans are designed as short-term financial assistance if you’re facing a temporary emergency, especially the kind that may threaten your retirement savings.
By using your car’s title as collateral, you could receive a title loan from New Mexico Title Loans, Inc. up to $15,000 — and keep your car. All you need is to be at least 18 years old, have a driver’s license or state-issued ID, have your vehicle for inspection, and have a lien-free title in your name.
To get started, just visit one of our many New Mexico title loans in your area or fill out a quick online form. A title loan representative will review your information. Then, either visit a store location or have a loan representative meet you at a location of your choice with the required items. If approved, you could have the cash possibly the same day.
Avoid These Retirement Mistakes Today
Early and thoughtful planning will go a long way when there are so many retirement mistakes to avoid. And the sooner you start planning and saving, the better retirement you will experience in the future. So make sure you are avoiding these retirement mistakes as soon as possible.
With car title loans New Mexico, you have an option to help with any financial emergency you may have on the road to retirement. Start the easy and quick process today either at one of our locations or online. Fill out our online form today to get started.