Headline: Financial Advisors Warn: 7 Mistakes Over-50s Should Stop Making
There’s a saying, “Your health is your wealth.” As you join the 50+ club and consider retirement, it’s important to focus on both physical and financial health. While money can’t buy happiness, it’s crucial for a comfortable life, especially when paying for healthcare.
1. Don’t Delay Retirement Planning
Start planning for retirement in your 50s, not at the last minute. A well-thought-out plan should begin 10 to 15 years before you retire.
2. Use Catch-Up Contributions
If you’re 50 or older, you can contribute more to your 401(k) or IRA. This can significantly boost your retirement savings.
3. Prioritize Your Retirement Over Adult Kids
Helping your adult children financially can hurt your retirement savings. Focus on securing your retirement first, as there are loans for education but not for retirement.
4. Avoid Lifestyle Creep
As your income increases, resist the urge to spend more on non-essentials. Save the extra money for retirement.
5. Don’t Withdraw Retirement Savings Early
Withdrawing from retirement savings early can lead to penalties and taxes. Keep these funds untouched for your future.
6. Plan for Healthcare Costs
Healthcare expenses can be significant in retirement. Consider long-term care insurance and save for future medical needs.
7. Be Wary of Scams
Scammers often target older adults. Stay informed about the latest scams and take precautions to protect your money.
The Top Tip: Ask for Help
If managing your finances feels overwhelming, seek professional advice. A financial advisor can help you create a solid plan for your retirement.
This advice was summarized from Parade.
Unique Perspective:
As you approach retirement, it’s essential to understand that financial health directly impacts your overall well-being. By avoiding these common mistakes, you can ensure a secure and enjoyable retirement. Whether it’s maximizing your savings or staying vigilant against scams, taking proactive steps now will pay off in the long run.
https://parade.com/living/what-people-over-50-need-to-stop-doing-according-to-financial-advisors