You’ve heard advice about how to improve your finances and prepare for retirement, but what about mistakes? On this week’s episode of the Retirement Reality Podcast, Mike Kojonen shares five ways you could be ruining your retirement.
The Reality of the Matter:
People love to share advice about how to manage finances and prepare for retirement, but they don’t often tell you what mistakes you could be making. On this episode of the Retirement Reality Podcast, Mike Kojonen shares five ways you could be ruining your retirement.
1. Treating retirement as a destination
If you’re still working, it’s easy to think of retirement as the end goal. But you shouldn’t think of retirement as the finish line. You need a plan for your assets.
“Success in life is not a destination. It’s always a constant journey,” said Mike. “Start dreaming about not just being retired, but what’s the plan in retirement.”
A lot of retirees pass away in their first year of retirement, so it’s important to do some planning to enjoy your time.
“When you don’t have goals and you don’t have dreams and you don’t have something to plan for, it can be a big disappointment to you,” said Mike.
2. Believing retirement will solve all your problems
Once you retire, you won’t have the stress of work anymore. But there are still challenges. Retirement often presents challenges that you didn’t have when you were working.
For example, you will be with your spouse more often, and that can cause some marriage problems because you were used to more breaks from each other.
3. Assuming your monthly spending habits will be same
How much money do you want in retirement? You need to evaluate what your retirement expenses will realistically be.
Some people say they can live on $2,000 a month, but you could spend that much money just on food each month.
4. Not staying active in retirement
Retirement planning shouldn’t just be about your money. Mental and physical fitness are just as crucial. Being active is habitual, and so is being lazy.
“You need to be active,” said Mike. Those who don’t are more likely to fall into a depression.
5. Investing like you’re 35 years old
It can be tempting to take too much risk with your retirement money, but you need to be careful and seek guidance from a trusted advisor. You need to ask yourself what your comfort level is for losses.
Listen to the full episode or use the timestamps below to find a specific segment.
3:28 – Treating retirement as a destination
6:22 – Believing retirement will solve all your problems
8:11 – Assuming your monthly spending habits will be same
10:39 – Not staying active in retirement
13:52 – Investing like you’re 35 years old
18:14 – Mailbag: Which account should I withdraw from first?
Thanks for checking out the Retirement Reality Podcast. We’ll talk to you again next week.