Want to know one of the biggest mistakes Savers make in retirement?
One of the biggest mistakes made by Savers in retirement is that they wait too long to spend their hard-earned money!
The longer the Saver waits to spend their money, the better chance is that they won’t be able to. The reality is that, the older a person gets, the less they spend (health related circumstances aside). In many cases, their cost of living becomes less and going ‘out and about’ to spend money becomes more difficult. When a Saver waits too long to enjoy their money, they miss out on the Live Well Die Broke Philosophy. The ‘Financial World’ has been convincing Savers of the ‘what ifs’, but Tony wants to share some ways Savers can avoid getting caught in this trap.
The first reason is that they do not have a written GamePlan. Without a written retirement income GamePlan, how can the saver and their advisor know how much they can safely spend in their retirement? Retiring without an income plan turns into a game of chance. That is why at Tony Walker Financial, we offer a free written GamePlan to ensure our clients can spend their money without the fear of running out.
The next thing to understand is that money over time is worth less. This is true for many reasons, whether it’s from inflation or whatever may happen. Studies have proven that money is worth less over time!
Another note from Tony is that, risk and reward are traveling companions! The Financial World’s message of ‘what if’ has been ingrained in the way Savers have stockpiled money into 401(k) plans and brokerage accounts on Wall Street. Putting all this money at risk in hopes to get the reward of higher rates of return. Over time, yes – they’ll probably grow their money, but at what costs? Market Risk will cause Savers to lose sleep. Market crashes will cause Savers to lose 25% or more of their nest egg hoping for more and more, when they might not really need it! Also, again – Savers may lose the opportunity to use and enjoy this money before it is too late all because they listened to the folks on Wall Street tell them they’ll need more, more and more to live on as they get older.
Remember this is NOT Granddad’s retirement! For the earlier generation, it was significantly easier to plan for retirement than it is now. There was no fear of the lack of SS and they could always rely on their pension (MailBox Money®) to get them through retirement. These things are not as common as they once were. That is why it is important to have a trained retirement specialist who can help you live out the Live Well Die Broke Philosophy.
Lastly, there is no such thing as a free-lunch. All these annuity peddlers are promising bonuses of 10%, 15%, even 20% in the annuities that they are selling! This may sound like you hit the jackpot, but don’t be fooled. There is no such thing as a free-lunch! These large bonus annuities often come with some fine print and red tape – please be sure to discuss your situation with Tony Walker Financial prior to committing your money to an annuity you don’t know enough about.
Let’s get started! Learn how to Live Well Die Broke with Tony Walker Financial!