Are You Prepared for Retirement? Unfortunately, many individuals are living their day-to-day lives without thinking about their retirement phase. With so many retirement myths out there, many individuals are not properly preparing for retirement. Rather than making mistakes that could be detrimental to your retirement, allow these 5 facts to clear things up a bit:
- Myth: Nobody needs as much money in retirement as they due today. Fact: The majority of us tend to spend the most money on our days off, so imagine when every day becomes your day off.
- Myth: If I move to a retiree-friendly state that does not have income taxes, I will be able to save money. Fact: It is never smart to make a big move just because of taxes. Many states with low-income tax standards end up having high property and sales taxes that will end up balancing everything out.
- Myth: Once I am in retirement, I will fall into a lower tax bracket. Fact: This can be a pitfall move as we have already determined you will likely need the same, if not more income during retirement. Additionally, since you will likely qualify for less tax deductions, you may not drop tax brackets.
- Myth: I qualify for Medicare, so my health care expenses will be covered. Fact: Medical expenses for seniors typically exceed the amount Medicare allots, which means you must set aside sufficient funds for your health care needs during retirement.
- Myth: I have a 401(k), so that is enough. Fact: Yes, this is a good preparation measure to take, but it is not enough. You know the saying, €œDon't put all of your eggs in one basket?€ This goes for retirement as well. Also, having only a 401(k) will limit your tax options once April rolls around.
Are you ready for retirement? Serving Banning, Beaumont, Calimesa, and all of California, contact Little & Sons Insurance Group for all of your retirement needs.
