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Retirement Planning Mistakes to Avoid by Goldstone Financial

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Retirement Planning Mistakes to Avoid by Goldstone Financial

Are you getting close to retirement age and feeling a little anxious? Don’t worry; you’re not alone. Many people feel anxious about retirement, especially if they haven’t started planning for it yet. In this blog post by Goldstone Financial, we’ll go over some of the biggest retirement planning mistakes to avoid. Avoiding these mistakes can make your retirement transition smoother and less stressful. So, let’s get started!

Goldstone Financial’s Guide to Avoiding the Common Retirement Planning Mistakes

Not Saving Money

One of the biggest retirement plan mistakes you can make is not saving enough money. While there are many ways to save for retirement, such as investing in a 401k or IRA, the most important thing is to start early and contribute as much as possible.

Unfortunately, many people wait until they are closer to retirement age before they begin saving, making it difficult to catch up. Another mistake is not contributing enough to take advantage of employer matching programs.

For example, if your employer offers a 401k match of 50%, you should contribute at least that much to receive the full benefit.

You may struggle to cover essential retirement expenses if you don’t save money. According to Goldstone Financial, it is crucial to start saving early and contribute as much as possible to ensure a comfortable retirement.

Not Planning for Tax Implications

With retirement, you will likely be in a lower tax bracket than during your working years. Any retirement income you receive will be taxed at a lower rate.

However, if you are not careful, you could end up with a higher tax bill than anticipated. For example, if you withdraw money from a traditional IRA before age 59 1/2, you will be subject to a 10% early withdrawal penalty.

Additionally, if you are not careful about taking distributions from your retirement accounts, you could end up bumping yourself into a higher tax bracket.

By paying attention to the tax implications of retirement, you can help to ensure that you have more money to enjoy in retirement.

Not Investing Wisely

According to Goldstone Financial’s research, many people assume that they will be able to rely on Social Security. However, the truth is that Social Security only covers a portion of retirement costs.

To have enough money to cover your expenses, you need to invest in a retirement account such as a 401k or IRA. However, simply investing in a retirement account is not enough.

You also must ensure that you invest in the right mix of stocks, bonds, and other assets. Otherwise, you could end up with too little or too much exposure to risk.

Working with a financial advisor can create a retirement plan that meets your needs and helps you avoid making this common mistake.

Not Planning for Healthcare

Even if you have a good health insurance policy, your out-of-pocket costs will likely increase as you age.

In addition, Medicare does not cover all medical expenses, so you will need to plan for items like long-term care and prescription drugs. If you haven’t already done so, start by estimating your future healthcare costs.

Then, work with your financial advisor to determine how much you need to save to cover these expenses.

By taking these steps now, you can help ensure that your retirement is healthy and happy.

Goldstone Financial’s Concluding Thoughts

As you can see, there are several retirement planning mistakes to avoid if you want to retire comfortably. Goldstone Financial believes that by taking the time now to plan your retirement and understand the common pitfalls, you can set yourself up for success later on down the road.