Retirement Plan: 4 Mistakes to Avoid

Many people plan their retirement income throughout their career while others improvise, hoping that a golden parachute will eventually drop from the sky. Both way, there are several myths and realities about senior living that should be addressed leading up to retirement.

One of the most important realities is that even with a 401 (k) and other benefits such as Medicare and Social Security, people will still need to save a high percentage of their income for retirement planning.

Below are 4 retirement mistakes to avoid, such as ignoring an emergency cash advance:
Income for Retirement Planning

  1. Failing to Save

    The most important aspect of retiring is that every individual needs some type of safety net to account for less money coming in to pay bills.

    Betting on the stock market is not necessarily the safest place to park money, although other more solid accounts, such as buying treasury bills, certificates of deposit or putting cash in a money market account can help preserve funds for a much longer time frame.

    Ideally, having millions in various accounts generate interest income but most people do not earn enough to fit this category. That’s why the best plan is to save money starting at an early age.

    Your Best Way Out
    One of the luxuries of retiring is the ability to take vacations. For some people going on vacation once per year is essential, whereas for others once per decade is all they can afford. Either way, vacations usually require saving and paying close attention to cutting expenses.

    Here are some tips for maximizing a vacation budget:

    • Research multiple hotels online to find the best rates.
    • Ask about senior rates for hotels and airlines.
    • Pick the off-season for a vacation when hotel rates are cheaper.
    • Remember that most hotels wheel and deal if they are not sold out.
    • Bring food instead of being shocked by expensive restaurant prices.
    • Keep luggage limited so that there’s no chance of losing a lot of valuable items.
    • Consider vacations to resort areas not far away.
    • Use an emergency cash advance when it can be repaid over a short time period.

  2. Assuming Medicare Will Cover All Medical Bills
    Even though Medicare covers the health care costs of many individuals when they turn 65, this federal program has its limits.

    It does not cover, for example, illness that occurs outside of the United States. It may also not cover many expenses, such as dental care that previous insurance covered that was paid by an employer.

    Your Best Way Out
    Usually with any insurance plan, there’s a chance that the policy only covers so many different types of health conditions while the patient must pay the remainder out of pocket.

    That’s why it’s helpful to build a savings account, which can be funded initially with an emergency cash advance.

  3. Forgetting About Tax Planning
    Certain retirement plans such as IRAs, which have minimum distribution requirements at age 70.5, can lead to increased taxes. It’s important to know the taxable amount leading up to this payout, which can be substantial.

    Your Best Way Out
    Once a person reaches the age of minimum distributions from a retirement plan, it’s important to avoid big tax penalties. These payouts are taxed which requires proper planning. Retirees will pay lower taxes for capital gains on non-retirement investments.

    A tax advantage to reaching the age of retirement is that it could mean a break on property taxes. Checking with the tax department of a state website, as well as working with an accountant, can help answer these questions.

  4. Avoiding Extra Income
    Even after retirement, some people focus on their lifelong hobbies as a way to generate extra income. The internet provides many ways to earn money, especially for writers, web designers and business consultants. This extra income can come in handy, especially for continuing to build a savings account or planning a vacation.

    Another reason to earn extra income is to remodel a home or make a big purchase, such as a boat or an extra car. Some couples simply want to save up to build a stronger safety net for their children or grandchildren.

    Your Best Way Out
    Business investing is a route that people can take if they have enough capital to risk. One of the best investments that anyone can make is to invest in their own dreams, whether it’s for profit or just to give something back to society.

    Online businesses are becoming viable alternatives to brick and mortar businesses, especially when they involve unique arts and crafts. Once again, an emergency cash advance can be the best solution for starting a business.

Steve Burgess is the Spokesperson for Faaast Cash, which provides instant online payday loans and payday cash advance, servicing the entire nation. Steve has over 25 years of senior executive experience turning around, building and leading some of the fastest growing and most successful companies in America. He has his MBA, makes media appearances, and is a highly regarded speaker at conferences, corporate and business events, and leading universities. Steve is also a #1 bestselling author whose books include Purpose, Passion, Abundance, On an Enlightened Path, and Living in Abundance. Google +

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