By Matt Archer and Nina O'Neal

Archer Investment Management

Many of us aren’t addressing the realities of retirement planning. Here are some of the worst mistakes being made today.

Underestimating life expectancy
Twenty-five years ago, insurance companies estimated life expectancy at 83 years. Despite the volumes of media coverage generated over recent years about our increasing life spans, many investors still underestimate – often severely – just how long they could live. This plays havoc with retirement planning and finances. Recently a 90-year-old woman told me her friends were planning a party for her with 150 guests when she reached 100.

Many financial planners now develop retirement plans based on life expectancy of 90 to 95 years. While people get it intellectually, the implications of longevity haven’t been an integral part of their thinking.

Failing to consider long-term care need
The question you must ask yourself is, “Could your nest egg cover the potential cost of long-term care?” Premature long-term care can be steep and difficult to cover. However, the notion of spending a few thousand dollars a year for long-term care insurance, versus the possibility of hundreds of thousands of dollars in the future, is smart money management.

Making large loans to family members
You’re retired or on track for a comfortable retirement. A family member asks you for a large loan for a house, college, or to start a business. Many times, you’re not in a position to be as generous as you would like. Big withdrawals from your nest egg early in your retirement can seriously crimp your spending in later years.

Underestimating expenses in retirement
Don’t think you’ll be spending a lot less money when you retire – forget all the old rules. Today, many retirees are healthy, they travel more, and they’re fixing up their houses. Maybe their spending slows in later years, but not at first. If you don’t have a handle on current cash flow and expenses, you can’t get started on retirement planning.

Focusing on your nest egg to the exclusion of all else
The lesson here is while the need to grow your nest egg is critical, you cannot focus only on finances and neglect the most important part of later life. How are you going to spend your time and fill your days?

Many of us don’t prepare well to retire. Some invest money fairly consistently along the way, but don’t prepare their life for smooth and fulfilling transitions.

If we can be of any assistance, please call Archer Investment Management at (919)758-8911. We will be happy to work with you.

The above material was prepared by Peak Advisor Alliance.

Archer Investment Management

Archer Investment Management is focused on the enhancement of your life, whether that be helping you to pursue your passions, developing a better plan for your financial future, or developing a better benefit package for your business. The protection of the things you value is our first priority. You work hard for what you have, and we want to help you preserve that. Our passion is educating our relationships about the financial markets, business strategies, and investment opportunities.

Founded in 2005 on the desire to provide unbiased advice and unparalleled customer service, Archer Investment Management works with families and businesses all over the country. Located in one of the best and fastest growing cities in the country, Raleigh, North Carolina, the firm has been positioned for tremendous growth and opportunity. The firm’s dedication to the community is what lead the Triangle Business Journal to identify Matt Archer, Founder and Managing Partner, as one of the 2011 “40 Under 40 Leadership Award” recipients. Each member of the company has a burning desire to help you enhance your life, protect what you value, and educate you on the opportunities available.
Securities and Advisory Services offered through Triad Advisors Member FINRA/SIPC.

This material was prepared by Peak Advisor Alliance. Peak Advisor Alliance is not affiliated with the named broker/dealer.


Category: Editorial