Imagine saving your hard-earned money for decades, just for it to vanish. Believe it or not, this happens to plenty of retirees who make just a few critical mistakes.
Here's what you want to avoid to prevent losing your nest egg:
- Forgetting to have a cash cushion – An accident or medical emergency could wipe out your savings before you even have a chance to think about it. You don't want to spend your monthly income on issues like this. It's wise to have at least six month's worth of cash on hand to help you get through any unexpected situations.
- Making big purchases – After decades of depriving yourself, we know that your natural instinct may be to go buy what you've always wanted – A boat, perhaps? Or a luxury vehicle? Go ahead, if you've got the money, but remember that if the majority of your retirement savings are tied up in the stock market you may not be able to build that money back up.
- Taking on too much risk – Depending on which way the wind is blowing making a few wild bets on the stock market could make you rich or leave you with nothing. Low risk investments like real estate may not seem exciting, but they're more likely to provide you with a steady stream of income.
With the right retirement plan tools, you can preserve your wealth and continue to maintain your comfortable standard of living years after your receive your last fulltime paycheck.