Big Purchases That Can Haunt Your Golden Years RETIREMENT REGRETS
There’s a reason they call the first few years of retirement the “go-go years.” The initial days of your retirement will likely be the most active and eventful. Once freed from the constraints of your career, you begin checking items and experiences off your bucket list and spending is at an all-time high. However, watch out for a few big purchases that most retirees almost always regret. Let’s take a look! A Large House Throughout your life, you likely grew accustomed to upsizing your home along the way. Now, at the peak of your net worth, you may have your eyes and goals set on your dream home. Retirees may be attracted to spacious properties or even vacation homes, only to find the upkeep and expenses are more than they can handle down the road. When the benefits don’t outweigh the cost, a large house often
amazing around-the-world vacation right out of the gate, you may cripple your financial health later into your golden years. Many retirees often regret paying for expensive airfare, accommodations, meals, and other expenses. Opt for local wonders of the world to explore instead. Expensive Gifts It’s only natural to want to spoil your loved ones — especially as grandchildren come into the picture. However, many retirees often regret the extravagant gifts they generously gave early in their retirement because of the financial strain it created later. Your golden years should be a time of fulfillment and happiness, unburdened by financial stress and regrettable decisions. So, before you make any large purchases, whether it’s a luxury car, home, or vacation, be prudent with your spending and remember that your nest egg must last you for decades. Before you swipe the card or hand over the cash, make sure you have a long-term view in mind: no regrets.
becomes a regret. Lavish Travel
Retirement should be all about travel and bucket list items, right? Right! But, if you spend a large chunk of your savings on an
CRAFT A SOLID RETIREMENT BLUEPRINT Understanding Your Streams of Income in Retirement
Employer-Sponsored Retirement Plans
Retirement marks a significant life transition. It’s when you finally bid farewell to the traditional 9–5 routine you’ve followed for many years and step into a new phase of life. But as you plan for this new stage, a critical question arises: Where will your retirement funds come from? To ensure a financially secure retirement, it’s paramount that you understand where your sources of income come from in your golden years. Social Security For many retirees, Social Security serves as a foundational source of income in retirement as it provides a regular payment based on your work history, retirement age, earnings history (benefits are based on your 35 highest earning years), and changes in government laws and policies. After paying Social Security taxes for 10 years, employees become eligible to collect Social Security. In 2022, the average monthly Social Security benefit was roughly $1,625.
in retirement. These investments often include a monthly guaranteed income over potential returns. Rental Income Many retirees own real estate and rent out properties as a form of passive income after they retire. However, it’s important to note that managing properties and tenants requires careful planning and dedication, so it’s a decision that must be well thought out. Depending on your individual circumstances, your sources of income in retirement will vary and likely be a combination of the mentioned sources, along with potential inheritance, part-time work, health savings accounts, defined contribution plans, and more! To discuss your planned sources of income during retirement and incorporate them into your plan, call us today. We are ready to help!
If you’ve been contributing to a 401(k), 403(b), or a similar employer-sponsored retirement plan during your working years, this can be a substantial source of income in retirement. These plans allow you to accumulate savings on a tax-deferred basis, and some employers even offer matching contributions — an added benefit! Pension Plans While pensions are not as common as they used to be, some employers (especially state and federal government) still offer pension plans that provide a guaranteed income stream during retirement. Pension plans are also based on years of service and earnings history with the company. Personal Savings and Investments Many individuals have personal savings and investments outside of retirement plans that provide an additional income stream
2 • CampbellWealth.com
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