Get a little obsessive about your budget
More than one in 10 baby boomers state that they think a 10-12 percent withdrawal from their retirement income would be a standard amount. The thing is though, you’d drain your savings in less than ten years at that rate. Aiming for 4-5 percent in your first few years of retirement, that way, you can make it last, and adjust for inflation comfortably.
Remember that investing is not a 5K
Think long-term when it comes to investment returns. It’s not realistic to demand instant ROI, and no responsible investor will say otherwise. Think of the “get rich quick” mentality it the same way in regards to diet pills, if they all worked, no one would be overweight. You have to go slow and steady, results show with hard work. It’s a marathon.
Don’t forget about health care costs
Perhaps because of increasing health care costs and greater longevity, baby boomers have shown more concern about expenses that are difficult to forecast, i.e., medical bills. Despite the fact that housing can make up nearly half of retirees expenses, eight in 10 said that health care was their largest expense. By planning ahead and staying financially educated, retirees can work in wiggle room for unpredictable expenses.