Steer Clear of These 7 Traps in Retirement

If you are in retirement or expect to retire soon, you may be wrestling with, or will soon face a dramatic shift in your lifestyle.

What should you do?

1. A more conservative investment posture may be in order. But be careful. If you are too conservative, the risk of running low on cash may increase.
2. Always, ALWAYS be cognizant of scams. Fraudsters are quite skilled at separating you from your cash.
3. Implement the correct withdrawal strategy from your accounts.
4. How long can you delay Social Security? You will receive 25% less if you begin at 62 vs full retirement age, according to the Social Security Administration. Continuing to delay up to age 70 will add to your monthly check.
5. Spending too much can be a problem, but are you spending too little?
6. Medical expenses can eat into savings. You have insurance, but budget for unexpected items.
7. Stay busy. Volunteer, take up a new hobby, exercise, or become a mentor.

Bottom line

Many look forward to retirement, and many that have left the workforce are enjoying their retirement.

But have a plan in place. Talk to friends who have retired. Learn what they have done correctly and what they wish they had done differently.

Remember, experience isn’t the best teacher, someone else’s experience is.