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Careful financial planning can certainly lead you to this outcome.
Overspending
Many people find themselves on a reduced or fixed income in retirement.
So, its really important to double-check youre not overspending.
Taking Social Security Too Early
Its possible to collect Social Security as early as age 62.
However, youll only be eligible for a portion of your maximum monthly benefit by doing so.
The longer you wait to collect Social Security, the larger your monthly payment will be for life.
So, waiting longer can have huge long-term impacts on your cash flow and financial stability.
Underestimating Effects of Inflation
You wont be immune to the effects of inflation just because youre retired.
Its crucial to consider how even low levels of inflation ranging from 1-2% can erode your purchasing power.
Underestimating Medical Expenses
In many cases, getting older likely means increased medical expenses.
You could need extra funds to afford your medical costs without going into debt.
However, the returns on conservative investments dont always outpace the effects of inflation.
Not Having a Plan
It goes without saying that planning is key.
A safe and financially sound retirement must be carefully planned to be sure that you dont outlive your money.
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