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Avoid These Mistakes That Can Harm Your Retirement

There is plenty you can do to avoid running out of money in retirement, but you could be making costly mistakes now that will sabotage the comfort of your golden years. TaxRevo wants you to be aware of these missteps asap. 

  1. Failing to plan for medical expenses – Medicare starts at age 65, but that’s not the end of your medical expenses. It is estimated that a 65-year-old couple who retired in 2014 will need $220,000 for medical expenses over the course of retirement. Look into long-term-care insurance; we can help. 
  1. Underestimating costs – Retirement costs can be surprisingly high. You may find that hard to manage, an extra source of income could be needed. Check the Social Security Administration’s rules for working while receiving Social Security benefits. 
  1. Celebrating retiring with a big purchase – We know you want that new beach home in sunny Florida. Hold off on making major purchases at first. See what retirement is like and track what you are already spending each month.
  1. Helping out the adult kids – Many parents set themselves up for failure in retirement by supporting adult children financially. A study by Merrill Lynch says 60 percent of people 50 and older are assisting adult relatives financially. You may have to cut that cord.
  1. Claiming Social Security too soon – Waiting to claim Social Security benefits is one of the best investments around. If your full retirement age is somewhere between 66 and 67, your benefit check could grow by 32 percent if you wait until age 70 to collect, according to the Social Security Administration.