Pitfalls to Estate Planning
Everyone tries to make the best financial decisions they can to live out their retirement years in a comfortable setting and a fulfilling lifestyle. The decisions you make now will greatly affect your ability to live out you golden years the way you envisioned when you were working through your career. There are multiple reason people fail to prepare for their retirement or become anxious as that date draws closer. Let’s review some of the retirement traps that may prevent you from achieving your retirement goal.
- Not being good at saving: Many people do not have the proper savings habits or adjust those habits as they age. While you don’t have to live a pauper’s life, ensure you prioritize saving over increasing your spending now.
- Paying too much towards cost of living: Again, don’t deny yourself all pleasure or luxury during your working years, but really consider what a necessity is and what a luxury is. By living closer to your means or even a little below them, you can greatly increase your personal and retirement savings.
- You like instant gratification too much: concentrating on living it up now will hinder the possibility of comfortable retirement down the line.
- Underestimating how much you will need in retirement: Crunch the Numbers! Take a look at your life now and estimate what costs will be alleviated through retirement and what new cost may be added. Decide what kind of lifestyle you want to live later in life and prioritize saving to that number.
- Investing too conservatively or too aggressively: We all know from 2008 that the economy can be a fragile thing and we probably have not seen the last down turn before most of us retire. However, you can mitigate risk by investing and saving smartly and striking a balance between overly aggressive and being too conservative with your investments. (This is where a trusted estate planner comes in handy.)
- Too much playing the stock market not enough long term investment: While speculating the stock market’s rises and falls may be fun, it is not generally helping your plans for retirement savings. Ensure you strike a balance between speculating for fun and true investments for your future.
- Things out of your control: Inflation, a volatile stock market, and plain bad luck can be a major hindrance to you but if you keep these potential risks in mind, you can attempt to mitigate any negative consequences to your retirement plans.
Planning for your retirement on your own can be a daunting exercise. Knowing who to trust, where to put your money, and how much you will need can be questions that keep, even the savviest investors, up at night. The professionals at Burkhalter & Burkhalter, LLC. Are here to help you navigate the investment landscape. Don’t be overwhelmed and put it off. The sooner you get started the better you’ll feel. If you need a Tennessee tax attorney to handle your personal or business needs, contact Burkhalter & Burkhalter, LLC for a free consultation