HOUSTON – Are you hoping to retire soon?Â
Trevor Shakiba, private wealth advisor with Ameriprise Financial, shares his top financial tips when it comes to retirement.
If you retire at 60, you now need your assets to last 30 plus years. -Trevor Shakiba
5 Biggest Mistakes to avoid in retirement
- Overspending
- How much do you really need per month net of taxes?
- Do not plan for less than 80% of what you currently live on!
- Avoid taking out lump sums for random expenses!
- Getting too conservative with your investment portfolio
- We are living much longer!
- Moving to 50% bonds or cash isn’t going to provide enough growth in most cases
- We use 95 as our default life expectancy
- Forgetting about inflation
- Everything is going to be more expensive in the future!
- Inflation must be built into your analysis (3%-3.5%)
- Running out of money due to inflation is a bigger risk than the volatility of the stock market
- Underestimating medical expenses
- This is a major concern for most retirees
- Health care expenses are projected to increase 4%-5% per year
- Some studies show just for average prescriptions you will need $300k to be covered
- Don’t forget about Long-term care insurance
- Not having a social security strategy
- You cannot outlive this source of income
- Don’t just turn it on as soon as possible, as you might be leaving money on the table
- All factors should be considered including your spouse, health, taxes, investment portfolio.
For more information or to request a complimentary consultation with The Shakiba Group, call 281-724-9917 or visit, www.theshakibagroup.com.
The initial consultation provides an overview of financial planning concepts. You will not receive written analysis and/or recommendations.Â
This article is sponsored by The Shakiba Group.