Think You’Ve Got Your Retirement All Figured Out? Think Again – 3 Major Retirement Mistakes
If you’ve gotten a head start on your retirement savings, congratulations! You’re well ahead of the curve – particularly if you’re under 40. However, your 401(k) contributions and your IRA might not solve all of the issues you may encounter when you reach the magical age of 65. Here are a few factors that you’ll want to consider when planning for your retirement.
Not considering the costs of significant medical care.
Major medical events can wipe out retirement savings quickly and easily. One study conducted by HealthView Services found that the cost of healthcare for seniors who’ve begun their retirement in 2015 may range between $290,000 and $400,000 per couple – and that’s not factoring in out-of-pocket costs not covered by Medicare Parts B and D. Medical calamities could place a tremendous burden on retirement savings.
Also, the costs of assisted care for those who’ve suffered a mental or physical disability can be absolutely devastating. Make sure you investigate long-term care insurance plans.
Believing that you’ll be able to work past retirement.
Even if you’ve been at the same organization for most of your working life, it’s unwise to assume that you’ll still have a place even as you enter retirement age. Whether it’s because the business downsizes or closes, or if you suddenly have to retire due to health or familial obligations, it is very possible that retirement could be forced upon you.
Failing to diversify your portfolio.
If your retirement portfolio is mostly stock in the organization for which you work, you could be in for trouble. It’s easy to keep your finances tied to a company you know and trust, but if your company fails, your nest egg will shatter.
A well-diversified portfolio should contain physical assets as well as stocks, bonds and mutual funds. Gold and other precious metals can help to protect your savings with the kind of long-term security you can rely upon when other markets take a significant hit.