The Setup:

You’ve heard advice about how to improve your finances and prepare for retirement, but what about mistakes? On this week’s episode of Unlocking Your Financial Future, Ben shares five ways you could be ruining your retirement.

Click the timestamps below to skip to a specific topic in the episode.

The Combination and Key Points: 

People love to share advice about how to manage finances and prepare for retirement, but they don’t often tell you what mistakes you could be making. On this episode of Unlocking Your Financial Future, Ben shares five ways you could be ruining your retirement.

1. Treating retirement as a destination

If you’re still working, it’s easy to think of retirement as the end goal. But you shouldn’t think of retirement as the finish line. You need a plan for your assets.

“The hardest thing I have to do to people is take off their two- to three-year blinders,” said Ben. “It’s so hard for clients to see beyond the next two years.”

2. Believing retirement will solve all your problems

Once you retire, you won’t have the stress of work anymore. But there are still challenges. Retirement often presents challenges that you didn’t have when you were working.

“A lot of times, people struggle with the lack of human interaction,” said Ben.

3. Assuming your monthly spending habits will be same

How much money do you want in retirement? The majority of time, people don’t really know. You need to evaluate what your retirement expenses will realistically be.

4. Not staying active in retirement

Retirement planning shouldn’t just be about your money. Mental and physical fitness are just as crucial. You can try to find discounted or free fitness memberships and programs.

5. Investing like you’re 35 years old

It can be tempting to take too much risk with your retirement money, but too many people have been forced to go back to work because they took too much risk too late in life.

Also, it’s common for people to have a set it and forget it financial mentality. You need to keep your retirement plan updated.

Listen to the full episode or use the timestamps below to find a specific segment.

[2:37] – Treating retirement as a destination

[5:15] – Believing retirement will solve all your problems

[6:38] – Assuming your monthly spending habits will be same

[8:58] – Not staying active in retirement

[10:23] – Investing like you’re 35 years old

Thanks for listening to another episode of Unlocking Your Financial Future. We’ll talk to you again next week!


 

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