Planning ahead for retirement is something you’ve probably been doing for a long time. However, many people are plodding along with their retirement plans without realizing that some mistakes could be costing them and their children in a big way.
Here are the ten biggest mistakes you might be making with your retirement plan that could force your children to have to step in and take care of you:
- No clear investment plan, or a plan that’s based on a “buy and hope” strategy
- Too much of your own company or employer’s stock
- Aiming for an “average” amount in your accounts
- Still paying the bills for an adult child’s regular needs or lifestyle
- No established plan for your healthcare expenses in retirement
- Excessive debt and no plans to pay it down
- No spending plan for your current expenses or your future budget
- You’re taking too much out of your retirement plan early
- Your only retirement plan is a dedication to continue working to fund your needs
- No plan or insurance in place to deal with long-term care needs
As you can see from this list, most mistakes have to do with not having a contingency plan. Just one long-term care event or accident could leave you unable to work and also coping with costly medical expenses. For someone who planned to be working and very healthy throughout all their retirement, this plan exposes you to a lot of risks if even just one accident occurs. Developing a disability or cognitive problem could present even more serious issues.
Along with comprehensive retirement planning, it’s important to think about your legacy and your estate plan. Consulting with an experienced Massachusetts estate planning lawyer is critical.