The Most Common Misconceptions Retirees Have About Money
What is Your Financial IQ?
Many retirees have good financial health. Others aren’t quite as ready for retirement as they first hoped they’d be. They’ve got a good-sized nest egg socked away but not enough to see them through all the years of retirement. They may or may not use a financial advisor but could certainly benefit from a professional’s advice.
Here are some of the most common misconceptions retirees have about money:
- One million dollars will have you sitting pretty. A one-size-fits-all approach to savings is inaccurate. Americans are living longer than they’ve ever lived before. Therefore, the estimated million dollars that once was a good amount of money to live on is no longer adequate. Lifestyles have changed and the cost of living has increased, too. These are factors that should be considered when planning for retirement. The more money you have saved, the better off you’ll be.
- I’ll live off my social security benefits. Depending on your lifestyle, this may or may not be true. If you’re used to living frugally and have your debt paid off, you could very well live off the payments you receive from social security without touching your retirement fund. If things change with your health or living situation, however, the money you bring in each month may not be enough to sustain you for the rest of your life. Although it’s nice to have social security benefits to utilize, know that nothing beats a diversified and well-funded retirement portfolio!
- I can withdraw money from my portfolio each year without worry. What is referred to as the four percent rule is an antiquated method of spending that retirees use to have access to funds steadily while maintaining the majority of their retirement Withdrawing four percent of an account each year can leave men and women significantly shorthanded while retired.
- Moving into a smaller home will help you bank tons of money. Depending on your geographical location, moving to a city apartment that you have no ownership over can cost more than maintaining the utilities and property tax you pay on a rural home. Think carefully before deciding to sell all of your possessions for a swanky pad in a bustling city. Sure, you’ll avoid some costs, but it could be the type of decision that whittles away your retirement funds.
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You’ll be able to see for yourself why precious metals are a wise investment choice. Learn about our Home Delivery Gold/Silver IRAs and how to protect your assets so that you’re able to relax and enjoy life throughout the duration of your retirement. We provide you with options that help further diversify your portfolio and get you thinking outside the box where retirement is concerned.