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For all of this, you have to make sound financial decisions.
Many retirees arent always great at that.
They didnt diversify their portfolios enough, which left them vulnerable when the market got shaky, he said.
And boy, did they regret it when inflation started eating away at their reduced checks.
He explained that they didnt follow the 4% withdrawal rule.
Some were taking out 8%-10% annually.
He said this dangerous pattern means they might run out of money way too soon.
They thought Medicare would cover everything it doesnt.
He also noted that some skipped getting supplemental insurance and then got hit with huge bills.
Theyre spending a fortune onmaintenance, property taxesand utilities, he explained.
Some couldnt bring themselves to downsize … even though it wouldve saved them thousands.
They kept spending like it was 2020 … but everything costs more now, he said.
Some didnt realize their fixed income needed adjusting for inflation.
He added that some didnt understand how required minimum distributions work.
And others … well, they forgot about taxes on their Social Security benefits.
They didnt have a clear spending plan or budget in place.
Many hadnt thought about how theyd actually spend their time and money.
But everyones situation is different.
Underestimating Life Expectancy
Lots of folks planned for maybe 15-20 years of retirement, Lokenauth explained.
But people are living longer than ever.
Some need their money to last 30 plus years.
He said this miscalculation meant some didnt save enough or invested too conservatively.
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