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You might have a financial plan, some savings and a targeted age in mind when you hang up your hat and coast into your golden years.<\/p>\n
But many Americans perhaps don\u2019t pay enough attention to planning their after-retirement finances \u2014 an oversight that could have serious repercussions on the quality of life they\u2019re able to sustain in their golden years.<\/p>\n
Here are three careless mistakes that could keep you from winning at retirement.<\/p>\n
Inflation could put a considerable dent in your nest egg \u2014 and ignoring or overlooking its effects could be a big mistake.<\/p>\n
If you retire today in 2026, the inflation rate you\u2019re expected to face over the next 30 years is around 2.42%, according to a forecast by the Federal Reserve (1).<\/p>\n
However, new inflation fears are cropping up thanks to the burgeoning war with Iran. CNBC reports that the recent spike in oil prices combined with the sluggish job market may mean a period of stagflation is coming \u2014 one where high inflation rates and slow economic growth put serious pressure on the budgets of everyday Americans (2).<\/p>\n
\u201cI have been concerned about the threat of stagflation for a long time, in part because there are so many different inflationary pressures on the economy,\u201d CME Group\u2019s Chief Economist Erik Norland told CNBC. \u201cYou have huge budget deficits, inflation above target, and central banks are easing policy anyway. And then you add to that $100 per barrel oil.\u201d<\/p>\n
On top of that, while 2.42% might not seem like much on an annual basis, it adds up over time. For example, at 2.42% per year, a grocery bill of $100 today will cost you over $124 a decade from now.<\/p>\n
If inflation is worrying you, consider investing in assets such as real estate investment trusts and inflation-protected bonds to help your portfolio beat inflation \u2014 though they\u2019re not the right investments for everyone.<\/p>\n
That\u2019s why gold has long been touted as a safe haven asset during market uncertainty. Unlike paper money, the precious metal can\u2019t be created at will by central banks \u2014 it is untethered to any single country, currency or economy.<\/p>\n
And over the past 12 months, gold prices have climbed almost 80% (3). It\u2019s hard to argue with that kind of growth.<\/p>\n
If you\u2019re looking to get in on the current gold rush, consider investing with Priority Gold<\/a>, which is an industry leader in precious metals that offers physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.<\/p>\n Also, if you\u2019d like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases can also receive up to $10,000 in free silver<\/a>.<\/p>\n To learn more about how Priority Gold can help you reduce inflation\u2019s impact on your nest egg, download their free 2026 gold investor bundle<\/a>.<\/p>\n Read More: I\u2019m almost 50 years old and don\u2019t have retirement savings. Is it too late to catch up?<\/a><\/strong><\/p>\n Read More: Non-millionaires can now invest in this $1B private real estate fund starting at just $10<\/a><\/strong><\/p>\n Another common mistake is overlooking taxes on your retirement income. And in fact, there are two ways you might be paying too much tax \u2014 not accounting for taxes on Social Security benefits and not planning for taxes on account withdrawals.<\/p>\n For example, if you\u2019re filing an income tax return jointly with your spouse and your combined income exceeds $44,000 per year, up to 85% of your Social Security benefit can be taxed (4). That leaves just 15% of it untaxed, potentially.<\/p>\n That\u2019s why you can use an online IRS tool to determine if your benefits are taxable.<\/p>\n Additionally, withdrawals from tax-advantaged accounts, such as 401(k)s and individual retirement accounts (IRAs), are also taxed as ordinary income, so you\u2019ll need to account for this in your planning and budgeting as well.<\/p>\n If this is all starting to make your head spin, a financial planner can help you design a tax-efficient withdrawal strategy \u2014 but you\u2019ll want to start this process long before retirement since some strategies, such as a Roth conversion, may be more tax-efficient if executed over several years.<\/p>\n A financial advisor who specializes in retirement planning can help to ensure you\u2019re maximizing the effectiveness of your retirement plan.<\/p>\n Finding the right advisor is simple with Advisor.com<\/a>. Their platform connects you with licensed financial professionals in your area who can provide personalized guidance about your retirement strategy.<\/p>\n A professional advisor<\/a> can also help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations \u2014 two key factors in building the right asset mix for your retirement portfolio.<\/p>\n Through Advisor.com, you can schedule a free, no-obligation consultation<\/a> to discuss your retirement goals and long-term financial plan.<\/p>\n Even with the help of a financial advisor, it\u2019s also important to plan for changes in your investment strategy before and after retirement.<\/p>\n In this respect, retirees often fall into two camps: Those whose portfolios are too aggressive, opening them up to potentially large losses, and those whose portfolios are too conservative, creating the risk that their funds won\u2019t last as long as needed.<\/p>\n When you retire, you may want to move to a more conservative portfolio to protect your gains and buffer your savings from stock market swings. But you could also balance this out by holding some stocks, so your savings will continue to grow (which also protects against inflation).<\/p>\n You\u2019ll want to ensure your portfolio can support your planned income stream throughout your retirement, including required minimum distributions, and that they\u2019re as tax-efficient as possible as well.<\/p>\n However, planning for your retirement is more than just a savings strategy. Having a financially secure retirement requires close scrutiny of not only your income but also your expenses.<\/p>\n You never want to get caught off guard by surprise expenses.<\/p>\n You never want to get caught off guard by surprise expenses. That\u2019s why many people turn to a budget. A quick daily check-in of your accounts can show you exactly where your money is going.<\/p>\n An app like Rocket Money<\/a> can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.<\/p>\n This can help you cut unnecessary costs, and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.<\/p>\n Rocket Money\u2019s intuitive app<\/a> offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features \u2014 like automated savings, net worth tracking, customizable dashboards and more \u2014 make it easier to stay on top of your retirement contributions and overall financial goals.<\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/strong><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Federal Reserve Bank of St. Louis (1<\/a>); CNBC (2<\/a>); APMEX (3<\/a>); IRS (4<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. 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