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Common financial mistakes to avoid making in retirement

Published: Mar. 2, 2021 at 10:49 AM EST
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LEXINGTON, Ky. (WKYT) - Reaching your retirement goals takes a lot of effort. Once you reach those goals, you have to continue the process in order to achieve the plans you put in place. Fiduciary retirement advisor Josh Smith of Strategic Wealth Designers joined us on the newscast to discuss 3 common financial mistakes to avoid in retirement to make sure you stick to your plans. The first mistake is frivolous spending.

“Those small expenses can really add up,” Smith says. “Going to Starbucks every day or eating take-out when you planned to cook at home doesn’t seem like a big deal. But if you start to get into the habit of spending more and more, you’re going to run into a problem.”

Buying a car that is out of your budget is an avoidable mistake. Because of their fast depreciation, it is not a good idea to purchase a car you cannot afford as it will create unnecessary debt. Paying cash for your next vehicle purchase or buying used is a wiser idea.

“Making the wrong investments is a common mistake,” Smith says. “If you are 5 or less years out from retirement or already in retirement, you are no longer in the accumulation phase. You don’t want to be in risky stocks because you won’t have time to bounce back from a downfall. Safety is key in this phase of life.”

Creating and sticking to a realistic plan is essential to living life in retirement. To see additional stories surrounding business and economic news for the Lexington area, visit https://www.WKYT.com/MoneyMatters/ and if you have a question for Josh send an email to info@swdgroup.com.

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