Savvy Retirees Should Avoid These 7 Common Financial Mistakes ...

Retirement presents numerous financial traps for retirees, particularly in the wake of the recent stock market collapse that destroyed the retirement nest eggs for millions of Americans.

Of course, for seniors in serious debt, learning more about what bankruptcy is could provide information about seeking debt relief through the bankruptcy system.

Beyond bankruptcy, though, there are seven common financial mistakes that every retiree should avoid.

According to a recent personal finance article from the Associated Press, retirees should beware of making these mistakes:

• Being too conservative with investments. Treasury bonds, savings accounts, and other safe investments with low rates of return might be safe, but they won?t make anyone a lot of money, either. Many financial planners tell their clients that investing at least some of their money in the stock market will give them a better chance of outpacing inflation.
• Delaying planning. It is never too early to begin planning for retirement, even if you are young and just starting your career.
• Being too generous. Many financial planners lament their clients? tendency to repeatedly help their adult children escape their own self-inflicted financial troubles. Most experts advise retirees to consider their own needs first, and then worry about their kids.
• Giving too much to the IRS. Sources indicate that many retirees pay more taxes than they need. In retirement, most people are in lower tax brackets than they were when they were working, but many taxpayers fail to make this adjustment.
• Following bad advice. Family, friends, and former co-workers will all offer their own opinions about your financial prospects. Retirees should seek consultation from independent parties before making drastic financial decisions. Family and friends can be trusted, but seniors should exercise extra caution when making decisions that will determine their financial fate.
• Underestimating health care costs. As the costs of medical care continue to rise exponentially, retirees often have a difficult time estimating how much money for medical care they will need in their golden years. Even though Medicare will provide some aid, retirees might want to save more than they think they will need for health care.
• Shorting themselves on life expectancy. Many retirees also underestimate how long they will live. According to the Society of Actuaries, there is a 63 percent chance that at least one member of a 65-year-old couple will live past 90. So, seniors should be careful not to assume a premature death.

If you are a retiree and worried about excessive amounts of debt, this information may not offer enough guidance. For more information about your legal options when seeking debt relief contact a local bankruptcy lawyer today.

Source: http://www.clearbankruptcy.com/blog/savvy-retirees-should-avoid-these-7-common-financial-mistakes/

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