Four Seasons Financial Education Reveals Top Three Myths about Retirement Planning
St. Louis, MO (PRWEB) July 30, 2013 -- Four Seasons Financial Education is often asked about common retirement myths given their experience educating thousands of employees accross the US. Today they announced three of the top myths among employees and retirement plan participants:
1) I’m close to retirement, I need to be conservative – If you feel the need to take your retirement savings from “fifth gear” to “second gear,” don’t forget how long you may live in retirement. Although you may feel “old” at age 65, you may live 25 to 30 more years. Unless you’ve saved extremely well, you may still need growth to satisfy your 70s and 80s.
2) A good rule of thumb is… – If you hear advice such as “save 15 times your salary” or “don’t spend more than 4% of your savings a year in retirement,” take it with a grain of salt. We are all very different and have different goals. Depending on pensions, health, risk tolerance, inflation, and many other factors, your needs will vary greatly from your neighbor’s. Rely on personalized calculations for your retirement needs.
3) I won’t need much income once my mortgage is paid off - What happened the last time you paid off an auto loan? Did you feel that much wealthier? Chances are the money was quickly used for other needs. Don’t forget that you will still owe property taxes, insurance, and upkeep on your home in retirement. Also, you may have larger health insurance costs in retirement that you didn’t have in your working years. Some Americans actually spend more annually in retirement than they did while they were working.
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 and advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.
Anna Fruits, Four Seasons Financial Education, http://www.financialbootcamp.net, 888-981-9355, [email protected]
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