Here are a few of the most common mistakes we’ve seen seniors make in regards to their retirement planning.
Physician’s Money Digest lists some of the most common mistakes that the authors have seen seniors make in a recent article titled “Top Mistakes Seniors Make”:
1. Misinformation about Medicare. Some seniors believe that once they qualify for Medicare, they are 100% covered without any gaps. Unfortunately, there may be issues, such as nursing homes and assisted living for long-term care. These are not covered under Medicare.
2. Failing to consider mental incapacity. Many seniors don’t address how they want health care and property decisions handled in the event they are incapacitated. Remember, a will doesn’t take this scenario into account.
3. Drawing from retirement accounts too soon. Withdrawing money from your retirement accounts too soon or too late can really affect your savings. Consult with professional such as your financial advisor or NW Legacy Law Center regarding the retirement account rules to get the most from your assets.
4. Mis-timing life insurance decisions. You should assess your life insurance needs and current premiums to determine what is appropriate in your circumstances.
5. Relying on annuities. Whether an annuity is the right choice depends primarily on your specific financial situation. Conduct an in-depth assessment of the product and your overall financial plan with with a professional such as your financial advisor and then with NW Legacy Law Center to confirm it follows your estate plan.
As you can see, there are many issues that need to be addressed when it comes to retirement planning. Do not go it alone. Get appropriate professional assistance by speaking with your financial advisor and then with legal counsel such as our team at NW Legacy Law Center to ensure your retirement planning choices or changes follow your estate plan.
A good way to get started with your estate plan anew or update is to attend one of our free estate planning Workshops. Please contact us at 360-975-7770 or at firstname.lastname@example.org to sign up and learn more! Already a client? Ask us about our Client Service Program.
Reference: Physician’s Money Digest (April 8, 2015) “Top Mistakes Seniors Make”