USA Today’s Rodney Brooks had a good article on some of the numerous missteps and miscalculations retirees AND advisors face when planning for income needs in retirement years. Click here for the whole article, but here’s a list of the Top 7 Mistakes:
- Are you really going to spend less when you retire?
- Do you really need that much money in bonds when you retire?
- Are you taking into account inflation?
- Does your spouse have power of attorney, and are all accounts held jointly?
- Are you assuming that because you haven’t saved enough for retirement, you can keep working into your 70s?
- Are you underestimating health care costs?
- Are you prepared psychologically for retirement?
These are all good concerns to be thinking about for retirement. Personally I find these to be the largest concerns of the financial planning aspects, #2 low bond rates, #3 inflation protection, #6 health care costs, and one concern not mentioned, out living your income because of longer and longer life expectancy. All of these can be largely addressed by a correctly selected annuity plan.