The First Error: Retiring when all you really needed was a rest. All too often, individuals who are nowhere near retirement age, retire or take an early incentive offer imagining that they’re prepared to stop working. After a few months or perhaps years, they discover their routine to be tedious and they feel restless, desperately wanting to work once more. Unfortunately by that time many of their business contacts might have vanished or the economy is in a downturn and they cannot find meaningful work. Before you decide to fully retire, discuss a phased retirement or flexible work schedule with your company. Check out all your options before committing to retirement.
The Second Error: Blowing through your retirement fund too quickly. Keeping track of just how much money you take out of your portfolio each year is crucial to you not outlasting your funds. Four % is the critical number that you could withdraw from your savings each year (for example $4,000 for every hundred thousand you have in your retirement account) which should ensure that your money will last thirty years. If you take out more than that and you could very well deplete your retirement account well before the three decades are up. If you end up retiring in a bearish market and you take funds out when your portfolio is shrinking and you will probably run out of money in less than 15 years. On the other had, if you retire in a booming market, your retirement funds might last forever.
The Third Error: Not taking note of your investments. Many people have no concept exactly what they’re invested in, exactly what they can anticipate to make, and just how much risk they’re taking with their portfolio. This can all be quantified. Do you realize just how much risk you’re taking? Exactly what’s your investment allocation?
If you want more advice, you can download this FREE 30-page report, The 10 Biggest Mistakes People Make When Retiring & How YOU Can Avoid Them at www.MyRetirementSuccess.com.