According to the global analytics firm Gallup, only about 44% of Americans have created a will. This finding may not surprise you. After all, no one wants to be reminded of their mortality or dwell on what might happen upon their death, so writing a last will and testament is seldom prioritized on the to-do list of a Millennial or Gen Xer.
Have you been thinking about when is it best for you or your spouse, if married, to retire? Do you have a retirement roadmap that tells you what is your best option for retirement? Have you considered things like inflation, increasing taxes and little retirement landmines like RMDs or required minimum distributions?
The #7 Blindspot is Retiring at the Wrong Time!
We have all had tasks that make us think "Oh I'll just get started tomorrow", then tomorrow turns into the next day, which turns into 2 months from now..
There's no better time to start preparing for retirement than today! It can take 3-5 years or more to correct some of the most expensive retirement traps we see every day in planning with our clients.
Click on the video below to learn more about Blind Spot #6!
The fifth Financial Blind Spot is paying your mortgage off early. Yes, it is true that there is a good sense of relief not having to write that mortgage payment every month. But, did you think about these financial consequences:
- The mortgage deduction on your taxes is often the largest of all deductions you can take. Why not have Uncle Sam pay a portion of your mortgage for you?
- If you have a home of just $250,000 paid for your bank is earning at least $15,000 a year in income from your money. You could be spending that income instead of your bank.
- Did you know that once you stop working and retire it becomes increasingly more difficult to gain access to the equity in your home?
Click the video link below to learn more about Blind Spot #5!
Haven't you heard all along that taxes will be lower in retirement, so save as much as you can now in your 401(k) or IRA. This is the biggest tax trap we see in retirement planning and is our Blind Spot #4.
To learn more about how to avoid or correct this tax trap issue and keep more of your money in retirement click on the video below!
Blind Spot #4 is Rising Taxes in Retirement!
Did you know that most retirees fail to plan on the cost of inflation, especially as it relates to their monthly expenses? And...did you know that the COLA (cost of living) adjustment to social security has not been keeping up with inflation? This is a huge potential risk to any retirement budget.
Blind Spot #3 is failing to plan for Inflation!
For more information about how to prepare a plan and your savings, to handle inflation, click on the video below!
Did you know that your Social Security could be taxed in retirement and that it could also be contributing to your tax rate actually increasing during retirement? If you receive a company pension, it is treated much the same way.
Blind Spot #2 is Depending on Government Programs!
Check out the video below!
Would you believe that most of the individuals and couples that come to our retirement planning workshops actually don't have a retirement plan with goals and a budget?
This presents a huge risk as there are many blind spots that can sidetrack a good retirement. Blind Spot #1 is not having a written plan with goals and a cashflow forecast!
Check out this video to learn more about Blind Spot #1 and how to overcome it!
When you are planning for your future, what do you think about? You may think about your retirement, enjoying having the time and money to take trips and pursue your interests. Maybe you think about your home and enjoying the feeling of stability that can come with home ownership. In making these plans, people often find that their long-term view involves money, in some fashion.
A successful finale. If you are an entrepreneur, what is the final act for you and your business? If you have been successful, you likely want the company you created to be able to continue once you are no longer at the helm. For that reason, many people in your position create a succession plan to implement when the time comes.