By Brad Bobb via Iris.xyz
Retirement is a goal that most of us aspire to. Even though retirement is often thought of as an ending, it is more of a beginning event. Yes, you may be done working, but a new phase of life is starting. Each phase of life has its own risks and retirement is no different.
For the benefit of those preparing for retirement, I have put together a short list of common mistakes I have seen retirees make. Please take note and consider where you may go wrong and how to prevent it.
1. Giving or loaning money to your kids
This may be the most common mistake I have witnessed, as well as the toughest to resist. As parents, we all want the best for our kids and want to see them succeed. One of the roughest things we experience as parents is watching our kids struggle. When we see our kids struggling, our instinct is to help them, but giving kids money when you’re retired can be a huge mistake.
If you have extra money to give, then feel free to give or loan as you wish. But if you don’t have extra income and you are already withdrawing 5-7% from your investments, you can’t afford to give away any money. So unless you are going to make a lifestyle change and reduce the amount of income you are living on, don’t give any away. There is also the psychological perspective that we aren’t really helping our kids by giving them money, but enabling them (I don’t think we have time to discuss this but definitely something to think about).
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