Top 5 Reasons Why You’ll Be Poor When You Retire
Saving for retirement is all about having the right mindset. Many people are content to go through their lives, blowing money left and right on things that they don’t need. They live for today and never think about what the future might hold. These people are neglecting their golden years of retirement and they will pay for it by working long into their 70s or living off of measly and shrinking social security payments. Being poor is no fun, but for some people, it’s the reality of life after work. Here five reasons why you will be poor when you retire.
1. Where was the focus?
Why were you buying cars and boats when you should have been putting money into mutual funds. Many people suffer from a lack of focus when it comes to saving for retirement. Many times, this can happen because their parents never taught the importance of putting money away for retirement.
2. Your portfolio had what?
One mistake that many working people make is letting their retirement portfolio go without constant oversight. If you don’t keep an eye on that portfolio in order to make sure it is diversified enough, you run the risk of losing your life savings. Certain stocks could fail, so it is important to have money invested in many different ventures. Even things like small business venture investments or real estate should be a part of your retirement portfolio.
3. The government hates you
Actually, they don’t. Sometimes it might seem that way, though. There are so many rules that go along with retirement accounts that many people don’t even know about. When you have an IRA or a 401k, you better know the government rules on what you can do with that money. If you make a mistake, it could cost you big time and leave you scraping for pennies in your retirement days.
4. You didn’t have a plan
Planning is the key to successful retirement. There are many tools available that allow folks to self-asses their retirement needs. You can figure out how much money you need to allocate in order to be successful in retirement. If you fail to plan for retirement, then you are planning to fail in retirement. It really is that simple most of the time.
5. You forgot that old people need more healthcare
So you planned for lots of retirement expenses, but forgot that old people need a little more help with their health. This is a common mistake among people who are planning for retirement. It’s natural though, as healthy young folks don’t like to think about being sick. You must have money set aside for extended healthcare, though, or it could end up breaking you.