Mistakes you need to avoid in your 60s and retirement

You’ve finally reached the light at the end of the tunnel. It’s time to retire and enjoy the fruits of your labor. But, as you get closer to your golden years, there are a bunch of financial mistakes you need to avoid so that you can afford to stay retired.

Here are some common pitfalls that you should steer clear from in your 60s and during retirement.

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1. Aggressive Investing

In your final working years and retirement years it is important to switch to a balanced investment strategy that holds no more than 60% stocks. As you near your 70s, you might even consider holding up to 70% of your investments in bonds and fixed income assets that are less volatile.

2. Claiming Social Security too early.

Once you hit the age of 62, the urge to draw social security is understandably hard to resist. However, gaining social security before you reach full retirement age means you’ll get reduced benefit amount. Try holding it off until 67,68 or even 70 to maximize your monthly payments. Take a part-time job or try living off your pension and 401k/IRA until you turn 67 to yield a larger payment that will make things much easier for you in your second innings.

3. Failing to plan for Medical and Long-term Care Costs.

The cost of medical care rises higher than general inflation, at a rate of about 5% to 6% annually. Failing to apply for Medicare coverage as well as long-term care insurance at the right time may put your retirement savings in jeopardy. Think about purchasing a life insurance policy that comes with additional long-term care coverage or go for a variable annuity with additional long-term care benefits.

4. Retiring without a backup.

Along with being financially ready to leave the workforce, you must also be mentally prepared to do so. The first few weeks of retirement may feel like a long overdue vacation, but further if you have no clue on how to fill your time, you may end up feeling bored or worse, depressed. Indulging in a hobby or doing things you love will keep you happy and potentially add years to your life.

The transition to retirement is much more enjoyable and convenient if you can retire debt-free, minimize your monthly expenses and save as much as possible in tax-advantaged retirement accounts. Plan it well with Cedrus Wealth Partners and avoid the money mistakes encountered by other in their 60s.

We at CEDRUS WEALTH PARTNERS anticipate, understand and proactively solve your financial and investment planning problems by helping you in wealth creation, risk management and tax efficiency.

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