Retirement Traps to Avoid Part 1

Retirement is supposed to be your “golden years”! Beware of traps that could undermine your financial stability.

Retirement Trap: Over Spending

At long last you are retired! You can do all those activities you couldn’t do while you were working. You are traveling overseas, taking cruises and generally enjoying a life of leisure.

Or… you’re trying new hobbies, acquiring all the gear and necessary equipment that is needed.

An increase in living expenses is common in the first few years of retirement. Yet it is hard to pull back once you get started.

I encourage pre-retirees to practice living on their proposed retirement budget while they are still working. Any savings generated can be used to pay cash for the next car or increase their emergency fund.

Once you retire, continue living on the “budget” for day to day living. Be conscious of when you are using more retirement funds and how much for those activities you have waited until retirement to do.

Many retirees feel compelled to be active, travel and play while their health allows them to. This is understandable. Yet using a significant amount of capital early in a retirement impedes the growth of your retirement funds. Funds that often need to last for 30 years.

Share:

More Posts

Can Children have a Roth IRA?

Kids will be out of school for the summer, working summer jobs.  Younger kids can mow lawns and babysit.  What will they do with their

IDAHO GIVES week

IDAHO GIVES begins this week.  It runs for 4 days April 29th – May 2nd.  This is an opportunity to support your favorite local charity

Being Grateful Year Round

I’m walking in a graveyard this morning.  It’s the closest, peaceful place to walk – right next door to the hotel where I am staying.

More To Explore

Can Children have a Roth IRA?

Kids will be out of school for the summer, working summer jobs.  Younger kids can mow lawns and babysit.  What will they do with their

IDAHO GIVES week

IDAHO GIVES begins this week.  It runs for 4 days April 29th – May 2nd.  This is an opportunity to support your favorite local charity