As people live longer, good financial planning for the retirement years becomes more challenging as well as more crucial. A person at or approaching retirement age can protect their hard-earned savings in several ways. First of all, be aware of fees involved in investment products and shop around if necessary to get lower fees. Also, be sure to plan regular withdrawal amounts so that money will last as long as it may be needed. Avoid risky investments and don’t forget to take taxes into consideration.
- Some advisers like to suggest variable annuities for IRA rollover dollars and pension funds but they come packed with hidden fees.
- Using the 4% rule is outdated and could lead retirees to run out of money. It is better to use 3% in today’s economy.
- Retirees should not expose themselves to too much risk, their money should last them at least 30 years.
“One of the most careless mistakes retirees make is neglecting to thoroughly read and vet financial products to ensure they will not lose significant amounts in hidden fees.”