This week is Part 2 of “15 Reasons Why People Run Out of Money in Retirement!”
On this episode of RRS, Dave Hall dives into the topic of retirement and the various risks that can affect one’s financial security during this phase of life. He discusses the financial risks like inflation that can cause retirement funds to deplete faster than expected. Moreover, he stresses the need for careful financial planning, as retirees on fixed budgets are facing increasing expenses such as rent, food, and utilities. This episode also explores the impact of unexpected expenses during retirement and emphasizes the need for individuals to preserve their retirement assets for the future.
You will learn from this episode the second half of the 15 reasons!
Key Takeaways:
1. Failing to consider the impact of inflation on retirement can lead to a rapid depletion of funds. Use the rule of 72 to calculate the impact and adjust your retirement plans accordingly.
2. Unexpected expenses can put a strain on retirement finances. Plan for big-ticket items and prepare for unexpected costs like home repairs or medical expenses.
3. Don’t risk your retirement savings on risky investments or financing your children’s dreams. Preserve your assets for your own future and consider other ways to support your loved ones.
4. Be cautious with your spending during retirement, as expenses can add up quickly. Focus on meaningful and long-lasting gifts rather than material items that may not hold their value.
5. Divorce can have a significant impact on retirement plans, including the division of assets and potential Social Security penalties. Consider the financial implications of divorce and plan accordingly to safeguard your retirement.
