(ThyBlackMan.com) A recent survey found that around 27 percent of americans are gravely concerned regarding their financial condition post retirement. This is a serious affair & money issues could be a great deterrent to comfortable retirement. It’s mostly because when you retire, you would not only get less than your usual paycheck every month – but you would also have to manage a series of additional expenses like long-term care costs, clinical expenses, home mortgages etc. Thus, if you are approaching 60, you must be careful about a healthy financial planning beforehand.
The post below will highlight on the typical mistakes to avoid in an elderly financial planning but prior to that you should know the must-have ingredients of a healthy financial plan.
- Monthly budget complete with expenses, income & any special indispensable luxury that you can’t avoid.
- Budget for big expenses over a 3-5 year period.
- Overview of all debts and assets
- Review of your health insurance scheme to check what’s covered & what’s not.
Debt is unavoidable today and if you are not careful about debt management, it can be quite a burden in your older days. So, if by chance, the debt gets out of control, don’t delay to consult a dent management scheme.
Mistakes to avoid:
No professional financial advisor
Many people make this mistake of taking financial planning advice from family members rather than a professional financial advisor to
cut costs. This is one of the silliest mistakes to avoid. Unless that member is professionally seasoned retirement finance, you have to seek a professional assistance. It’s because financial planning, especially retirement financial planning involves several calculations and nuances that are better handled by the experts.
Inadequate short & long term plan
As per studies, just 1/3rd of the populace has come up with their retirement financial plan. Lack of plan would affect your finance-future in different ways. First of all, absence of a calculated view on inflation & how it could affect your future buying power might leave you with inadequate cash backup for future. You have to ensure that your social security earning, investments etc. are aligned with inflation.
Next, an improper or no financial plan might allow you to indulge in unmindful splurges with no heed to savings- that might drain your wealth too soon.
Third, solid financial plans would allow you to benefit from probable investment opportunities lying before you.
Not being careful of scams
According to market reports, one among five people older than sixty-five years of age have been conned by dishonest scammers. Now, these evil folks are continuously bring up this way or that to cheat simple vulnerable people. You should know that elderly citizens are the most common targets of scammers. So, it’s absolutely essential for you to stay updated about the common con activities so that you can easily identify a scammer when a con is played to you.
Stagnant portfolio
If you keep your portfolio stagnant you won’t be able to accommodate needed financial expenses in your life as per any sudden change – in future plans or lifestyle or health.
Staff Writer; William Bell