We conclude Financial Mistakes People Make in Their 60s!
Other areas we should pay attention to after we retire, include:
Not changing your lifestyle after retirement: by not adjusting your expenses to your lower income level. Retirees must also account for healthcare and long-term-care costs.
Spending too much money too soon: if you have saved and invested regularly, you may be in the fortunate position of having a pretty large nest egg, but make sure you don’t spend too much money too soon! Keep in mind that that money might have to see you through the next 25-35 years with rising medical expenses and any unexpected downturns in the market. So avoid the temptation to spend large chunks of that nest egg early in your retirement years.
Being house-rich but cash-poor: Many of us pay our mortgages for most of our lives and end up with a lot of home equity when we retire, but with little cash left. While houses appreciate in value over time, the costs of upkeep including taxes, utilities, services, repairs, and maintenance, can add up to more than your budget. So consider downsizing your living expenses by selling your house and moving to a smaller, more affordable home. You can also invest the gains from a home sale to buttress your retirement savings.
Retirement isn’t supposed to be filled with money worries. Yet, that is exactly what will happen if you try to get above-par returns on your investments. There are many ways for a retired person to earn a part-time, active income. You could do some consulting, start your own Web business, or earn money doing any sort of purposeful work.
You must replace the outdated idea that retirement means living off passive income only. Paint a new mental picture of what retirement can be: a life free from financial worry that includes lots of travel, fun, and leisure, funded in part by active income from doing some sort of meaningful work.
One benefit of including an active income in your retirement planning is that you will be able to generate more money when you need to. But the other benefit—the one that no one talks about—is your ability to make wiser investment decisions because you won’t be a slave to your investments.
Finally… one of the worst things in retirement is becoming reclusive and inactive. Maintain social connections and to enjoy the company of friends and family. Join social groups and activities that enable interaction with peers.
The mind is like a muscle—if it is not exercised, its capabilities will fade. So in addition to exercising your body regularly, also exercise your brain. Reading books, solving puzzles, and just simply engaging in conversation are all great ways to keep the brain sharp and functioning well into later life.
At all costs, avoid becoming reclusive or spending a lot of time in front of the television. Staying active will keep you mentally sharp and physically healthy, will elevate your mood, and help you be happy well into your golden years!
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