Five Things That Could Ruin Your Retirement Savings

Share this episode with a friend:

Today’s Question:

Maybe you’ve planned well for retirement with the exception of this “one thing” that could derail your plans. Ensure nothing throws off your retirement by preparing for these five things when it comes to saving for retirement.

In The News:

[2:07] – The Dow Jones Industrial Average is up, and historically speaking, it can double every seven years.

The Confidence Corner:

[4:41]One Deadly Thing. It only takes one thing to mess up a retirement plan. Maybe you’ve done a good job in a bunch of categories but one poorly planned area can throw things off. That can be nerve-racking in retirement, which is why you should have an advisor help you with these five things.

[6:04]You outlive your money. This happens in a sequence of returns. If you have great returns the first few years of your retirement, you will not run out of money in most situations in a 20 to 30 year retirement. But, if you have the opposite situation where the returns are negative, you could run out of money early. You’ve got to be flexible if you are investing in the market with your retirement funds. You can adjust your spending and talk with your advisor along the way.

[8:44]The inflation creep. We often overlook inflation, but it’s one of the deadliest five things that can derail your retirement. It’s so important to understand inflation and factor it in 20 years from now. You have to be in stocks to some extent to help outpace inflation.

[12:16]The expense of long-term care.The odds of you going to a nursing home are low, but the odds of you needing assisted living are high. This is an area that is often poorly planned. Nobody likes admitting that they will eventually need this type of care, but the odds of needing some sort of care are really high. This can easily destroy your retirement if you haven’t planned for it.

[15:48]The stock market. If you’re over-invested in the stock market, it can cause problems. Make sure to diversify your assets.

[17:40]The threat of rising taxes. A 401(k) is a tax-deferred investing account, meaning you’ll have to pay taxes on the money you withdraw from this account. Taxes will probably rise in the future, and if you’ve accumulated a large sum of wealth, you could find yourself stuck with a hefty tax bill. Consider saving through a Roth IRA to have the money tax-free in retirement. People lose more than they realize later on simply because they want to avoid paying taxes in the beginning.

A Point Of Wisdom:

Additional Resources:

Schedule A Meeting

Download Your Retirement Rescue Toolkit Learn More About Our Firm

Your Guide:

Nathan O’Bryant – Contact

Share this episode with a friend: