Ask the average person, and they’ll tell you that they’re well on their way to retirement without much care in the world.
They’re saving money, and that’s all they know, but when pressed a little more, you may get a little ambiguity with your answer, more to the tune of not being sure how much they’ll have or need to retire, just that money is being taken out of their pay or they’re paying toward “something.”
That just isn’t going to cut it when it comes to saving money as it relates to retirement. What that truthfully sounds like is a person or couple that has more of an educated guess, and could potentially end up working much longer then anticipated or, worse yet, stop working at a certain age and then have to pick back up after being retired for quite some time.
While coming out of retirement seems like a good idea for actors or athletes, it isn’t what you had in mind when you first started talking retirement.
How exactly can you know you’re not making any mistakes on your way to retirement? You can avoid common retiring mistakes, and while there’s no set number or age when you should start retiring, the sooner is always the better, particularly if you have a job or company that is going to match anything you’re putting toward retirement. If you’re 25 years old, and your company has a retirement plan that includes a 401K company match, you should start investing regardless if you believe you’re too young or young enough that you don’t need to start thinking that way.
Another common mistake about retiring is the idea that time period is about staying put rather than starting over. For example, some who retire like the idea of having their house bought and paid for, but selling it might be yet another tool to have the means to retire on time and put more money toward retirement in general. Not only do you have the money from the sale of your house, but you don’t have to be bogged down with repairs or other costs that you simply don’t have or want to invest in at the moment. Renting often makes the most sense given that you don’t have to worry about upkeep and even though you now have a new monthly expense, you can’t argue the financial freedom of not repairing one thing after another, particularly if you have an older home.
Retiring can be daunting enough, but the one element of it that should leave you resting peacefully is knowing you’re not falling prey to pretty obvious retirement setbacks that could have you working for much longer than you thought.
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