Unbeknownst to a lot of people, some, well into their golden years, still have some financial issues when it comes to their retirement. There are still mistakes to be made, there are still some downfalls and hard times, and there are ways to navigate around those issues unscathed.
We’re here today to talk about some of the issues retirees may encounter, and how to solve them with the know-how and tools you already have in your belt.
Keeping old debt
This seems like an obvious point to make, but it’s one that not many retirees take to heart. Not getting yourself out of debt before retirement is one of the biggest mistakes one can make, your retirement funds should never go towards your credit card debt, or car payments, those will burn through your retirement funds faster than you think.
Paying off your mortgage before retirement should be a huge priority, as it is for most people, but it cannot be emphasized enough since a mortgage is most likely to be the biggest purchase you’ll make in your life. Focus on paying down as much as possible before retirement, or even downsizing to a smaller home where the mortgage is manageable, the utilities won’t be outrageous, and the money you save goes right into your pocket.
Keeping up with your investments and wherever else your money is going is an extremely important factor when it comes to financial-wellness, especially at retirement. Some retirees look at investing as a hobby, others as a necessity.
Whether you invest through more traditional routes like the stock market, or invest in real estate with your self-directed IRA, or even invest in a chicken farm, just keep your money moving, and working for you.
Relying on a single source of income
Don’t depend on a single source of income for anything, including your own retirement income. Social Security will not pay enough by itself, stocks hold the possibility of crashing, and do on occasion, bonds currently don’t keep up with inflation, and loans have to be paid back. This is where diversification comes into play, and why it’s crucial.
Living outside of your means
Most retirees don’t monitor and control their spending by having even a simple budget. For any situation, that’s a recipe for disaster. To just spend and spend, and then have an unexpected expense pop up, like a medical bill, or car repair, can cause serious financial damage. Keeping yourself realistically reeled in is imperative if your goal is to keep yourself afloat for 20+ years after retirement.
In reality, there will always be obstacles to hurtle no matter what, whether they’re financial or not is up to you, and the decisions that you make today. A self-directed IRA gives the IRA holder the power to invest in what best suits them. Opening a self-directed IRA can be beneficial to almost all retirement strategies, so get in touch with Accuplan today to find out if a self-directed IRA is what’s missing from your retirement portfolio.