Avoiding 8 Retirement Screw Ups
CNBC spoke with eight advisers, who between them came up with the eight most common mistakes made in retirement.(Photo: Thinkstock)
The potential pitfalls threatening a successful retirement are many, and the biggest errors fall into both psychological and financial categories, according to financial advisers. CNBC spoke with eight advisers, who between them came up with the eight most common mistakes made in retirement.
1. Lack of clarity
“The greatest concern we have with our clients is the psychological part,” said Michael Randolph, senior adviser and certified financial planner with Willow Creek Wealth Management. “They’ll say: ‘What do I do? Paint the fences? Then what?'”
Advisers get many retired clients who are “lost” and not focused on their finances or their future, he added, because after having been very successful throughout their career, they now feel they no longer have a sense of control.
2. Refusal to accept change
Many people don’t understand how to allocate resources over an unknown period of time, according to Kathleen Roth, a certified financial planner and partner with Waterstone Partners.
“The biggest thing is learning to accept that there might be a change in lifestyle and to live peacefully with that,” she added. “But when you talk about budgets, people shut down.”
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