FOUR MAJOR PITFALLS OF RETIREMENT

Posted on: May 18th, 2018 by Kevin Lavigne

Investing in retirement can be tricky, as it requires that you consider several factors of lesser concern to younger investors. Make a mistake and you could find yourself surviving on less income than you planned, paying more in taxes, or leaving a smaller legacy to your heirs. Here are the 4 biggest pitfalls of retirement.

  1. Planning for the right time horizon. Longevity is the #1 risk

facing retirees. Your life expectancy, if you are now 65, is at least

20 years more; but that represents an average.

  1. Market Risks. Retirees still need to invest a portion of their

nest egg for growth yet cannot afford to take on the same level

of risk as a younger person, because there is less time to make up

for bad decisions.

  1. Inflation. Most investors do not realize that your income

must double every twenty years just to keep up with the average

rate of inflation.

  1. Starting retirement with too large a draw-down. The amount

of income you need to draw from your savings to maintain your

lifestyle will increase with time. Other costs, such as medical.

 

Call Reid & Associates Financial Solutions today at 250-860-6464

 

 

 

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