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But no matter how prepared we are, were still prone to makingmoney mistakes.
For those over 50, there are certain missteps they should be aware they might be making.
One critical error Ive often encountered is not accounting adequately for long-term care costs, he explained.
I recall numerous cases where individuals underestimated the expenses associated with assisted living or nursing home care.
Below, experts identify the top money mistakes people over 50 most commonly make.
That is, letting their spending increase commensurate with their new salary.
What happens is they are unable to improve their financial condition because they spend everything they make.
Many individuals over 50 find themselves with inadequate savings due to late starts or inconsistent contributions.
Unfortunately, many people allocate retirement savings to money market accounts or low-risk bonds.
Over that same time period long-term government bonds returned 5.2% annually and T-bills returned 3.2% annually.
These changes can significantly impact your wishes and beneficiaries.
Ive had clients who faced legal complexities and unintended consequences due to outdated wills and trusts.
Its crucial to have a will, and consider setting uptrusts and powersof attorney.
He said that over-concentration in either high-risk stocks or low-yield bonds can jeopardize financial stability.
Many underestimate their life expectancy and thus execute the risk of outliving their savings, he added.
Planning for a longer retirement by creating asustainable withdrawal strategyand considering annuities can provide financial security.
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