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5 Money Mistakes You Can Make In Retirement

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Many people consider their retirement to be a reward to the many years of hard work at their company/job. With big plans and idealistic goals in mind, oftentimes, many people overlook financial mistakes that can be costly in their retirement.

5 Money Mistakes In Retirement

Here are some of the big money mistakes you can make in retirement:

1. You did not save for emergencies.

When planning for retirement, it is important to create a little wiggle room in case of emergencies. You never know if your car will break down, if a natural disaster will occur, or if any other costly scenario can happen to you. Along with your plans for vacations, art classes and other leisurely activities – plan to create a financial buffer to help you continue to live comfortably during your retirement.

2. You did not consider the costs of health care or long term care.

Along with emergencies, you must also consider how much your health care expenses will cost you. Sure, you have Medicare to rely on, but it does not cover all of your health care expenses, including prescription medicine. Also, as you are planning for your retirement, plan for any possible long-term care that you may need. You may feel young, spry and ready to conquer the world during your retirement – but truth be told, you may never know what can happen. Discuss your long-term plans with your spouse, children or any other important person, to make sure that they are aware of what you want to do – whether you are looking into possible in-home care or moving into assisted living housing.

3. You’re spending too much on your children/grandchildren.

As parents/grandparents, you may feel that it is your responsibility to continue to financially support your children and/or grandchildren. However, that can be damaging to your retirement funds and it is important to know when to say “no.” However, if you want to invest in your grandchildren’s college education (and it is a noble cause), you must consider the rising costs of tuition,as well as whether or not you will be paying for all your grandchildren’s college education.

4. You took out Social Security too early.

Some seniors may find it beneficial to take out their Social Security benefits later in order to maximize the amount of money that they can receive. Beginning at the age of 62, retirees are able to take out their Social Security benefits, but the benefits increase every year until the individual is 70 years old. That means that retirees are able to get more out of their Social Security at a later age than they are at 62.

5. You did not save enough money for retirement.

Plain and simple – maybe you realized that you did not save enough for retirement. Whether you were affected by costly emergency situations or poor retirement planning, if you find yourself struggling financially, it may be the time to start looking at other options. If you are are a homeowner over the age of 62, then a reverse mortgage may be able to help you find the financial independence that you are looking for. Without having to make monthly payments back to the lender, retirees are able to use their reverse mortgage funds for anything from vacations to health expenses to even paying off debt.

A huge benefit of a reverse mortgage loan is that it is there for the borrower to use in anyway that they please – from going to vacations, to paying for their grandchildren’s education to paying off debt, there is no limit on how you can spend it. If you are interested in obtaining a reverse mortgage loan, contact a Senior Advisor today at 1-888-808-8486.

Image courtesy of [bplanet] / FreeDigitalPhotos.net

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