Retiring takes planning, yet many retirees say they would change some things if they could.
“Planning for the future is crucial,” GoBankingRates said. “The amount of money needed to retire depends on several variables — some not entirely under your control — but most financial advisors will agree that $0 is definitely not enough.”
Here are a few things CNBC Select says retirees wish they’d done differently.
Diversifying money-saving methods
Many regularly contribute to their 401(k), but there are multiple ways to save for retirement.
Merrill Edge says you can consider an individual retirement account (IRA) to build your savings. You can choose between a Traditional IRA or a Roth IRA, for example. “Contributions to a Traditional IRA may be tax-deductible and the investment earnings have the opportunity to grow tax-deferred until you make withdrawals during retirement,” the website said. Roth IRAs, meanwhile, “are funded with after-tax contributions, so once you have turned age 59½, qualified distributions, including earnings, are federal-tax-free (and may be state-tax-free) if certain holding period requirements are satisfied.”
Retiring early
Early retirement can sound attractive, but some regret it. For one thing, Investopedia reports retirement savings must stretch further so they can last. Early retirees get smaller Social Security benefits and need to find health insurance. There are also potential mental health tolls.
“I have some clients who think they should have waited it out a few more years to get that extra financial security,” Julia Pham, a Certified Financial Planner at Halbert Hargrove told CNBC Select. “Waiting a few more years only bolsters your financial stability.”
Not planning during retirement
There’s a lot of talk about planning for retirement but what do you do while you’re retired? Aside from living within your means, think of what you want your days to look like. U.S. News has several examples of how you can spend your time. They include traveling, picking up a new hobby, teaching and mentoring.
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