As you might know, the road to retirement can be bumpy. Although unexpected road bumps are almost a guarantee, there are certain common obstacles that you can plan for ahead of time.
Here are some of those common retirement obstacles that you should be wary of:
Starting Savings Too Late
It might be tempting to forgo investing for retirement until you’re better prepared and have more income to contribute. After all, it seems far easier to prepare when you can handle all of your other financial obligations and invest heftier amounts.
This becomes a retirement obstacle because you miss out on the tremendous power of compound interest and long-term investing. To have a million dollar nest egg for instance, you’d need to save the same amount of money for nearly twice as long if you waited a decade.
Not Saving Enough
One of the other retirement obstacles plaguing millions of Americans is not saving enough for retirement. Even if you’ve started investing for retirement and are on track for a decent nest egg, you might be sidelined by unexpected costs in your retirement, such as if you plan to travel frequently.
Instead of being surprised by your lack of savings, determine a realistic retirement budget that factors in your cost of living, home costs, and other expenses that might crop up in your golden years. Better yet, work with a trusted financial advisor who can help you map out and determine these costs.
Being burdened by paying for your children’s education
The cost of education is skyrocketing, so many would-be retirees find paying for their children’s education to be one of the biggest retirement obstacles. If you’re feeling burdened by these costs, remember this: just like airlines tell you to put on your own oxygen mask first, you need to prioritize your own financial health. When you prioritize paying for your children’s education versus retirement, you’re causing more harm than good for both parties.
Want to learn more about avoiding retirement obstacles?
At LexION Capital, our holistic wealth management services provide clients with a worry-free retirement. Whether its determining a retirement budget, or helping your invest to reach your needs, we’re a fiduciary firm that can help you turn your financial dreams into realities. If you’d like to learn more, don’t hesitate to contact us today.
