Editors' pick: Originally published Nov. 3.
Retirement is like most things in life. With proper planning, things will probably turn out fine.
But, if you don't plan properly, things can go south fast.
Even if you do plan, there are many things you can forget or overlook completely. Still, most of the problems come with a complete lack of planning.
So, here, according to financial planners, are five of the biggest mistakes people make when it comes to retirement planning.
- Not consulting a financial planner before you retire.
"We get a lot of people who will put in their retirement paperwork and then call a financial advisor, after they make the decision," says Nicolas Abrams at AJW Financial Partners in Columbia, Md. "Some people will retire without even talking to a financial advisor. They think they've got everything figured out and will step out there. They are 60 and ready to go."
That's a bad move.
"Those are the people who you find having to go back to work, because you realize they haven't planned properly and weren't ready to retire," he says.
- Not having a retirement plan.
They worked 30 years, but didn't have a retirement plan," says Wendell Fuller of Fuller Wealth Advisors in Richmond, Va. "I see that more than anything -- not having a true sense of what will be the true costs of retirement goals and dreams, or thinking of them in today's dollars, and in 10 or 15 years, with inflation, could cost more than you think. "