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Be Wealthy & Smart

8 Financial Mistakes to Avoid For Retirement

Be Wealthy & Smart

Linda P. Jones

News, Business News, Investing, Business

4.8883 Ratings

🗓️ 6 March 2019

⏱️ 20 minutes

🧾️ Download transcript

Summary

Learn what 8 financial mistakes that commonly occur in retirement and what to watch out for.

Some common mistakes include: outliving your money, panicking in a bear market, and not outperforming inflation, among others.

I add my input to an already good list of ideas. These are things you need to think about well in advance of retirement, such as how to structure your portfolio, what you are investing in, and whether or not you buy long-term care insurance.

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Transcript

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0:00.0

Be wealthy and smart episode 534. If y'all know what I mean Put your hands up and declare with me

0:14.0

Yeah, I'm full of pay

0:16.0

e-e-e-e-e-e-e-e-e-h-h-a I'm gonna live the good life Step into a world of wealth and wealth and financial freedom without budgets, boredom or bosses on

0:31.5

be wealthy and smart. And now here's your host, Linda P. Jones.

0:38.0

Welcome to Be Wealthy and Smart. I'm Linda P Jones, America's Wealth Mentor.

0:42.0

Empowering Women and Men Worldwide to Financial Freedom.

0:45.3

On today's show, we're going to talk about eight financial mistakes to avoid for retirement.

0:51.0

And this comes to us from an article on

0:53.4

cnbec.com written by Mark Henrichs. We have three bullet points. The first one says a big part of

1:01.7

generating enough income to live off of in retirement

1:05.3

is identifying and mitigating risks to that income stream.

1:10.0

The second bullet point says bear markets, interest rates and inflation can all wreak it on retirement income.

1:17.0

And the third bullet point says physical and mental wellness, along with personal disposition and behavior patterns also impact retirees

1:25.8

financial decisions. And the article says generating enough income

1:31.3

in retirement calls for managing risks to that flow of cash.

1:37.0

Retirement savers can't do that unless they know what those risks are.

1:41.6

Financial planners identify these eight prime retirement income risks and provide guidance for reducing them.

1:48.0

Number one, timing, the risk you'll retire during a bare market.

1:54.0

Dallas-based certified financial planner Scott Stratton offers this scenario.

2:00.0

The market plummets 30% the year you retire and start withdrawing 4% annually

2:07.0

from what was previously a $1 million portfolio.

2:11.0

In 12 months, your portfolio falls to $660,000 and 4% is no longer a sustainable

...

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