Published by Taylor Financial Group (for women)
They say if you fail to plan, you are planning to fail. This statement has always resonated with me because, let me tell you, I plan for everything and anything. From a simple trip to the supermarket to visiting my daughter at college, I will make an extensive list of things to do and items to bring before even stepping out the door. Another event I plan for and make a priority? Retirement! More and more women are realizing the importance of preparing for retirement (oh happy day!), but when it comes to retirement, it’s not enough to get only the basics right. As women, we need retirement plans that are as durable as possible. So, let me share with you a few common mistakes women often make that could create cracks in the foundation of your financial plan.
The number one mistake is that women underestimate how long they may live. Did you know that women typically outlive their husbands? Even more, it’s true that nearly three out of four people don’t know that a 68-year old woman can expect to live for another 20 years or so. This misunderstanding can wreak havoc on the retirement plan you thought you had all figured out.
As a result of the above, women also aren’t understanding how much they need to save. Yes, contributing to your 401(k) and your IRA is critical. However, you must also gauge whether you’re saving enough to feel secure for the rest of your life (not just a portion of it). Unfortunately, nearly half of all workers above the age of 55 haven’t calculated how much they’ll need to live a comfortable life during retirement. Let us help you with that.
Finally, many women don’t understand the benefits of postponing Social Security! You can collect an extra 6% to 8% for each year you delay claiming benefits between ages 62 and 70. This is especially important since the money you receive from Social Security will represent a significant portion of your income during retirement. Claiming Social Security earlier than you should can cost you as much as $100,000 (Crazy, right?!).
The bottom line is that planning for retirement doesn’t have to be stressful. Watch the short video clip below, where Debbie explains how simple it is to begin the process, and how we take the journey with you every step of the way. If you have any questions or need help creating or revising your retirement plan, give us a call today.
Money Magazine, These Mistakes Can Crack Even the Best Retirement Plan, December 2017
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