Don't forget to think about your 75 or 85 year old self
St. Louis, MO (PRWEB) August 20, 2013
Four Seasons Financial Education, a financial wellness and education provider, today revealed the top 5 retirement mistakes they regularly see among the employees they assist at client companies.
5) Relying on rules of thumb - Simple rules of thumb can get people into trouble, such as needing five times annual income to have enough money to retire. Everyone is as unique as their fingerprint, so custom advice is key with something as important as retirement.
4) Going conservative at retirement - At 65 years old, some people may feel "old," but they may live to age 90 or beyond. This means they may still need to keep growing their money to last the 25 years they may spend in retirement.
3) Assuming Social Security should be taken early - Although changes may occur with the Social Security system, it is still a very large part of a retiree's life. What many people don't realize is that benefit increase by approximately 8% each year they are delayed until age 70. Not only is this a large annual increase, it's permanent and it adjusts with inflation. Don't forget to think about your 75 or 85 year old self.
2) Never using a retirement calculator - Since retirement may last 20 to 40 years, it's nearly impossible for the human brain to plan so far in advance. This is when a computer is needed. Don't just assume, use a free online calculator or speak with a Certified Financial Planner. Having enough money before retirement is crucial, so planning must be done.
1) Cashing out 401(k) plans early - WIth all the taxes and penalties assessed when taking retrement money out early, time may be the worst asset lost. If it took someone five years to save the money that was just taken out early, it may take 10 or more years just to catch back up. This is one of the most costly retirement mistakes possible.
About Four Seasons Financial Education
Four Seasons Financial Education provides workplace financial wellness and education services to companies throughout the US to help them improve their bottom line. We take a strictly academic approach to financial education and focus on the core areas of personal finance which may help increase employee productivity and organizational performance. Securities, education and financial planning services are offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.