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Written by Chuck Bowen
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Sunday, 14 September 2008 19:00 |
 When it comes to life, we all make mistakes. A better life comes from consistently making wise decisions before likely problems occur. A successful retirement is a result not only of wise decisions, but avoiding common pitfalls. Here are five ways to avoid the ones that will certainly rear their ugly heads if you don't take action now:
1. Save enough. The average SS benefit is $1,002. If you can't start early, start now with your 401(k). You'll likely need it at least 20+ years.
2. Keep an adequate emergency fund. You'll need 6- 12 months expenses, even in retirement. You won't want to take withdrawals from your portfolio in a declining market.
3. Diversify your savings. You need stocks and bonds to ensure your money grows faster than inflation and taxes, while spreading your risk.
4. Count your health care costs. Medicare doesn't cover everything, including nursing home, dental or eyeglasses. If you have a lot of health issues, your cost of living could go up.
5. Get your paperwork done. You'll need a will, health care instructions, umbrella insurance if you have significant assets, etc to name a few.
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