5 Financial Retirement Planning Tips You're Probably Ignoring

Are you one of the millions of people looking to retire soon? If so, you're probably aware that it's essential to have a solid financial retirement plan in place. But what if you're not sure where to start?

A recent study by the Employee Benefit Research Institute found that nearly half of all retirees ran out of money within just seven years of retiring. This statistic is alarming, and it underscores the importance of proper financial retirement planning.

But don't worry – James has you covered. In this article, he'll discuss five financial retirement planning tips that are often ignored and how you can get started today to make sure you don't fall short seven years down the road.

Ready to tackle this serious issue? Let's go...

Don't Neglect Your Debt

One of the biggest mistakes people make when planning for retirement is ignoring their debt. Just because you're getting closer to retirement age doesn't mean that your debt magically goes away. In fact, if you're not careful, it can actually get worse.

If you have any outstanding debt, now is the time to start paying it off. The last thing you want is to retire with a large amount of debt hanging over your head. Not only will this put a damper on your retirement plans, but it could also force you to return to work sooner than you'd like.

Make Sure You're Saving Enough

Another common mistake people make is not saving enough for retirement. It's essential to start saving early and contribute as much as you can to your retirement accounts. If you wait too long to start saving, you'll have to play catch-up, which can be difficult – especially if you're on a fixed income.

Don't Put All Your Eggs In One Basket

When it comes to retirement planning, it's essential to diversify your investments. This means not putting all of your money into one type of investment, such as stocks or mutual funds. Instead, you should spread your money out across different assets, such as bonds, real estate, and cash equivalents.

This will help protect your money if one type of investment takes a nosedive. For example, if the stock market crashes and your investments lose value, you'll still have other investments to fall back on.

Consider Long-Term Care Insurance

One type of insurance that's often overlooked is long-term care insurance. This type of insurance can help cover long-term care costs, such as nursing home care or in-home care.

If you don't have long-term care insurance and you need to go into a nursing home, your retirement savings could quickly dwindle. According to Genworth Financial, the average cost of a private nursing home room is over $90,000 per year.

Make A Plan

The final tip is to make a retirement plan. This may seem like an obvious one, but far too many people enter retirement without a plan in place. Without a plan, it's easy to lose track of your finances and make impulse decisions that can end up being costly mistakes.

When creating your retirement plan, you'll need to consider factors such as when you want to retire, how much money you'll need to have saved, and where you want to live. Once you have a plan in place, stick to it as best you can.

Making small changes to your financial retirement planning can have a significant impact down the road. By following these tips, you can help to ensure that you don't run out of money in retirement.

Financial Retirement Conclusion

All of the tips James mentioned have one thing in common: they require some effort on your part. Financial retirement planning is not a passive activity – you need to be proactive to ensure a comfortable retirement. But don't worry; these tips are easy to implement and can make a big difference down the road.

Saving for retirement may seem like a daunting task, but it's crucial to start as early as possible. The sooner you start saving, the more time your money will have to grow. And, if you're able to save enough, you may be able to retire earlier than you had initially planned.

We'd love to help you get started. Simply click the button below to schedule a time to connect with James. He'll go over everything you need to know about retirement planning. So what are you waiting for? Click the button below now to contact James.