In this episode of The Retirement Huddle podcast, Mark Howard shares some of the common assumptions people have about retirement and why those expectations can be wrong.
Thinking you’ll spend less in retirement
Some people think they’ll spend less money in retirement, but that’s often not the case, especially in the first few years of retirement.
“Think of the TV commercials that you see that depicts these perfect retirements where people are traveling and they’re playing golf and they’re buying stuff for the grandkids. Well, all of that costs money,” said Mark.
We get into the details with our clients to find out what their goals are and help them achieve that.
Thinking your taxes will be lower when you retire
Think taxes will be lower when you retire? Don’t bank on that. Income tax rates are currently at historic lows, but taxes will most likely go up after the pandemic.
Thinking you need to fund college before retirement
Remember, there’s no such thing as financial aid in retirement. It’s great if you want to help your kids, but don’t sabotage yourself. Student loan debt can be a huge burden, but mom and dad being a financial liability later in life can be a bigger burden.
Thinking you’ll never be able to retire
“One of the greatest joys of what I do is being able to put a plan together for someone that thinks they’ve got to work another 10 years, and we’re able to show them how to retire sooner than that,” said Mark.
A lot of people get to age 50 and feel way behind in saving for retirement. But people in their 50s are typically in a better position to save more money. We’ll show you how to grow your portfolio without a lot of risk
Also on this episode, Mark answers two mailbag questions about how to help parents with long-term care and dealing with the financial fallout of a divorce late in life.
Thanks for listening! We’ll be back for another show every other Thursday.
Today’s Rundown:
[0:55] – Thinking you’ll spend less in retirement
[2:03] – Thinking your taxes will be lower when you retire
[3:18] – Thinking you need to fund college before retirement
[4:12] – Thinking you’ll never be able to retire
[5:44] – Mailbag: How to help parents with long-term care
[7:13] – Mailbag: Can I overcome a divorce this late in life
