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But unfortunately, it can happen if youre not careful.
Theres a term for this risk: sequence of returns risk.
A market crash early in your retirement can wipe out so much of your portfolio that it never recovers.
Lacking an Emergency Fund
Hayut also added thatemergency fundsarent just for those who are still working.
When these [expenses] occur, they can significantly impact onesfinancial stability and peaceof mind.
Ideally, you should avoid forced selloffs in retirement as much as possible.
Paying High Taxes
Retired or not, youll still have to pay taxes.
But with careful planning, you might be able to reduce just how much you pay.
Underutilizing tax-advantaged accounts is a common mistake, said Mike Falahee, the CEO and owner ofMarygrove.
Roth contributions are taxed upfront but compound tax-free, and you pay no taxes on withdrawals in retirement.
That, in turn, means you dont need as much saved up in your nest egg.
Not Adapting to Change
When your circumstances change, your spending should also change.
But change isnt always easy.
Retirees often fail to adjust their financial plans in response to changing circumstances, said Hayut.
He retired comfortably but has had to adjust on the fly since then.
Poor investment choices and lack of diversification added to the financial strain.
For Oezulus, these mistakes forced him to drastically alter his lifestyle and adopt a more cautious financial approach.
Attorney Marty Burbank withOC Elder Lawsees this all the time among his retired clients.
Those things can and will make a significant difference in your retirement security.
Not only that, but she said it could be necessary to work with a financial advisor.
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