Here are some ways to face the challenges of retirement output:
1. Ignoring your long-term strategy
Have you ever taken the time to create an investment philosophy based on your goals, personality and level of risk? If you have, or you stay true to your strategy or you allow your emotions took over, when the markets are surprised? The reality is that markets fluctuate every day. If you try to beat the market and choke headlines, you will not only cause yourself unnecessary stress, but also by acting on their emotions can wreak havoc on your savings.
Dalbar research study in 2015 shows how the game leads to a lack of work in the market. Buying high and selling low because of panic reduces overall profitability and could jeopardize your retirement. What should I focus on? Maintaining a long-term vision and a disciplined approach and refusal to ride a roller coaster markets.
2. Wrong assess needs in retirement
You can very proud of themselves, having accumulated gnyazdonae egg. But even if you have saved a million dollars, it may not be enough. If you plan to retire at age 62, retirement savings will be useful to you for 30 years or more. Not to mention the additional costs such as health expenditure, maintenance of the house and taxes. The best way to avoid financial burden on the pension – to create funds for unforeseen situations and to work with your financial advisor to develop a different exit scenarios for retirement, to find out what you can cope with the economy. Then find ways to maximize savings, to give yourself a cushion.
3. If you do not take the required minimum distribution
If you are over 70½, you should start getting the required minimum distribution (RMD) from your traditional IRA and retirement accounts when employers support. It does not matter whether you need money to reach this age, you still have to adhere to the rules of RMD. What happens if you do not follow? IRS will charge you a penalty charge of 50%! This can significantly harm your pension savings. As an example, if you need to pick up $ 5,000 and not impose more than 2500 dollars. It is unnecessary losses can be avoided. Depending on how much you have emergency funds, you may even be forced to use their retirement savings to pay a fine, which will further damage your financial future.
4. Participation in risk behavior
If you start saving for retirement, you'll probably be in a completely different stage of life. As the years passed, to re-evaluate that market risk do you like? While you can not completely eliminate the risk of your portfolio, you can be sure that your investments match your tolerance for risk.
At this point of your life you need to focus on finding a balance between an appropriate mixture of the impact of market volatility, and to know the security that your money will be waiting for you when you retire. This balance is unique to each person, so do not copy the strategy of those around you to take. If your portfolio is leaning too far in any direction, it can mean the difference between a successful retirement and the end of the money.
5 Tips from the wrong sources
If you do not cooperate with a trusted financial professionals, you put your money in a dangerous place. At this point in your life you need to work with a counselor who will help you to make a written plan of profits and work through various exit scenarios for retirement, not just to help grow your money.