Texas Retirement Planning Specialist Derrick Kinney Shows How To Avoid Five Critical Retirement Mistakes

"An extended stay in a long-term care facility can eat up retirement savings quickly," said Kinney. "Current data show that roughly 70 percent of adults over the age of 65 will need long-term care at some point in their lives. The reality is that Medicare provides very little coverage so most adults may have to cover the expenses themselves."

Mistake #3 - Not having a valid will.

When you die without a valid will, your state will create one for you. The state's will may or may not be consistent with your intentions or desires.

But there's also one more frequently overlooked consequence of dying without a will.

"Failing to leave a proper will increases attorney's fees and other costs related to probate in a dramatic manner," said Dallas estate planning attorney Elliott Burdette ( http://www.eblaw.net). "A simple, properly prepared will can usually be admitted to probate for a total cost of approximately $1,500, but the legal expenses associated with not having a will are at least three times and often six to ten times greater than if an individual had prepared a valid will."  

And just because you have a will, doesn't make it valid.

Burdette said one of the most common mistakes he sees are people who create their own will in a manner that makes it invalid. Therefore, it has the same effect of not creating a will at all.

Mistake #4 - Not understanding the tax implications of retirement.

"Before you retire, you must understand that every financial decision has both an economic and an income tax implication," Arlington certified public accountant Robert Brackeen ( http://www.rbcpatx.com) said. 

"There are two common mistakes I see people make during retirement," said Brackeen. "The first is that they don't fully understand how and when to calculate required minimum distributions. They just assume the investment fund will do it for them. The second is that retirees and recipients often get confused about the tax implication of gifts, both to the donor and the recipient."

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