9 Biggest Retirement Planning Regrets
Throughout my years of experience with helping people get to and through retirement, I have seen a lot. In case you missed my show Redefining Retirement this past Sunday on KTVN Channel 2 news at 5:30pm, I shared with you the 9 biggest regrets from people that have already retired and have gone through the process of planning for retirement. Here they are listed below:
1) Lack of savings and an unrealistic understanding of how much will be needed in retirement
2) Failure to have a tax plan, an income plan AND an investment plan
3) Failure to use a tax-forward plan, such as deferring Social Security
4) Withdrawing money from tax-deferred IRA’s too early
5) Not spreading Roth IRA conversions over a period of time
6) Failure to hedge against inflation and use a tax co-efficient
7) Excessive borrowing
8) Retiring too early and underestimating life expectancy
9) Not planning for long term care expenses
I want to share with you two recommendations I have from Sunday’s show to avoid making these mistakes: 1) find the right advice givers, someone who is experienced and has a proven track record and 2) understand the right way to create your Retirement Income. It’s hard to understand if the advice you are getting from your advisor is good or bad, so one thing I recommend is determining what kind of advisor you have. Approximately 90% of advisors in this country fall under a suitability rule, which means they have to prove what they are doing for their clients is suitable - not that it’s healthy, just that it’s suitable. Less than 10% of advisors are fiduciaries meaning, by law, they have to do what’s in your best interest. I call this the X-factor: make sure you are working with an advisor that is truly a fiduciary with experience and a solid track record to make sure that you’re healthy in your financial situation.
My second recommendation is that there is only one right way to create your Retirement income. You should have a portion of your retirement money in principle protected accounts that exist to create safe, predictable income for the rest of your life, and your spouse’s life, if you are married.
Here at Cornerstone Retirement Group, we are fiduciaries, and in our eyes, you deserve to have your needs put first and solutions offered according to your specific needs. If you would like to visit with us to review your retirement plan, give us a call at 775-853-9033.
To watch the above referenced episode of Redefining Retirement click here.