We’ve all made poor decisions and later looked back with regret. Avoid these key (bad) decisions lest you find yourself with retirement regrets.
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The Bass Lines:
Retirement Regrets: Taking Money From One Area To Finance Another.
- [03:08] – We call this robbing Peter to pay Paul. An example would be taking money from your IRA to finance your new beach house. If you don’t have a plan in place for this transaction, it could hurt you when you’re 85 and you’ve suddenly run out of money. Furthermore, if you’re under the age of 59 and 1/2, Uncle Sam will penalize you for taking premature IRA withdrawals. However, even if you’re over that age, you still might be missing out on potential gains on your investments if you haven’t planned accordingly.
Retirement Regrets: Lifestyle Creep.
- [5:16] – Lifestyle creep is a phenomenon that occurs when your income rises and your lifestyle creeps up to match that level of income. This becomes a problem when you retire and are earning less. If you’re 65 years old and still spending like you did when you were fifty, you could be in trouble. The best practice is to keep your spending level the same as your income increases.
Retirement Regrets: Retiring Too Early.
- [10:00] – It’s important to count the costs before making crucial life decisions like the one to retire. It’s normal for you to want to retire early. However, if you don’t plan accordingly, you might find that you have retired too soon. Be sure you have the income necessary to stay retired. The last thing you want is to find yourself faced with the decision of whether to cut your lifestyle or go back to work.
Planning thoroughly now will enable to you live a retirement without regret later. - Mr. Stillman's OpusTweet This