Top Retirement Mis-Steps -Part 1
Each week I share financial news, retirement advice and budget tips on Kolr 10’s Ozarks Live.
This week I discussed the first few tips of some common retirement mistakes.
#1 Not having a fully mapped out retirement strategy
The one big mistake people make is they don’t actually have a strategy written down that they review on a regular basis. Instead, they wing it. When it comes to the current economic times that we’re in, the volatility that we’re in, you should be reviewing your plan on a regular basis, making tweaks and adjustments and changes as life throw us curves.
I recommend getting a plan in writing as soon as you can when you first start your 401k, then yearly reviews, and sit down for an in-depth analysis 7-5 years before you want to retire.
Having a written retirement strategy is so important because you work your whole life for that magical day of retirement. If we’re not prepared, it’s going to be more difficult than we think.
#2 Not sticking to a budget.
If you are living beyond your means, contributing little or nothing to the savings you will need after your paycheck ends, You’ve lived too high, too high on the hog.
In retirement, you will still get a paycheck from Social Security, but it will be much lower than you’re used to and you aren’t able to increase it… ever. No extra overtime that week, bonuses, or wage increases.
Budgeting is part of planning. My dad told me one time, “Give the Lord 10%. Give yourself 10%, and spend 80, and you’ll be wealthy.” And when you think about it, that is just a simple plan that could work for most people.
And if you stick to any plan, you prove it wrong. If you’re sticking to a plan and a budget, and then if it becomes intolerable, and you just can’t do it, you can tweak it.
But if you’re operating without a budget, living paycheck to paycheck, I got to tell you right now, stop what you’re doing. Pay yourself first and build up a savings account. If you have a lot of debt and no savings, retire the debt. That’s an investment. Then map out a strategy for a budget.
If you aren’t sure how to start a budget, schedule a time to talk, click here. I will be happy to talk to you about it. I encourage the budget habit because habits are hard to break.
If you do have a plan, it’s not like it’s a house of cards. You can reshuffle if necessary. You just need to pay attention.
For a copy of my booklet the 5 Retirement Mis-Steps, fill out the info below:
Retirement Mis-steps Booklet request Form
Look for the rest of my 2 part series- can be seen here.
If you have a financial question for Bruce, visit his website: resourcecenterinc.com, or give him a call at (417) 882-1800, and he can fix you up with this handy-dandy pamphlet here that will start you on your path, and we will visit the next three tips next week.
Catch Bruce Porter’s show Dollars & $ense Tuesdays at 3 pm on KOLR’s Ozarks Live
The Resource Center, Inc. is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and The Resource Center, Inc. are not affiliated companies. 1013118-8/21