Many times we enter our retiree age with a lot of regrets. We sort of wish we could go back in time with our space machine and change the hands of time. One thing for certain we will never get back is our time. That’s why it is very crucial we are planning for the future even if we don’t see it. I’ll rather be taking the steps now not knowing when my last day on earth is going to be instead of not doing so and living until I am 65.
Here are 6 Retiree Financial Regrets:
1.) Not Saving enough for Retirement !
Must feel great to finally retire and realize you have nothing to support the following 40 years that’s comes after it (sarcastically stated)! This is the problem many of us have when we finally leave the work force. I couldn’t tell you how many times I have seen the elderly cry because they found out they still have to work a job way after retirement just because they didn’t have enough to live on. Social security only gives so much and the pension we have known years ago is also deteriorating only being 34 jobs that still has it in America and they are currently finding ways to get rid of. Hell, even the military finding alternate ways for pension plans starting the upcoming year (2018) with TSP Options. You have to save and invest in your retirement vehicles now.
2.) Not Saving enough for Emergencies !
Knock, knock! Who there? Bank account! Bank account who? Bank account with the low savings amount!
I know corny right? Seriously, saving for emergencies is vital when you are living on your on and have responsibilities to handle. Americans just don’t save as we trail our countries who pay more in taxes and have way less opportunities than we have in this rich country. In fact, less than 69% of Americans have a 1,000 saved for emergencies. That tells me that when a tragedy happen far as getting the car fixed, pipes fixed, and bills paid we are steadily stressing and dragging ourselves in more debt. By not Saving enough for Emergencies we are setting ourselves up for failure every time. Your emergency fund need to be at least 3 to 6 expenses stashed away for a rainy day!
3.) To Much Student Loan Debt !
We all know Student loan debt is steady climbing throughout America. With its 1.4 Trillion Dollar debt spread among 44 million college graduates it is safe to say many are doomed. With high interest rates and low job rates it’s hard to even think about buying a house or paying the debt off. As hard as it may seems it is important to get rid of those student loans. Too much student loan debt could hold you back from building wealth and prospering in your retirement years.
4.) To Much Credit Card Debt !
All I hear is swipe me when I receive a new credit card offer through the mail. I politely open it up and laugh at the interest rates and cut it up. The abuse of credit card debt is real in America as we are heavy consumers and buy, buy, and buy trying to impress everyone except ourselves. Together combined from the states of 2016 we have a total of 765 Billion credit card debt bill owned by Americans in the United States. Must be great to be an American right? That’s why it is imperative you live below your means and stop relying on credit cards. You will never get ahead if all you do is depend on credit cards to get you out of a crisis. You would be paying the debt from your grave or worse your kids will take on the bill. Yes, it is coming to your following generation paying the bill, so why do yourself or family like that?!
5.) Not Saving too Much for Children’s Education !
I firmly believe if you took the time to lay away and have sex to make the baby, it is your duty as a parent to provide everything you possibly can to send that child to college. Not saying you have to pay it all but at least have it to where he or she doesn’t graduate with a phone number (9,999,999,999). You have to save for your child’s education or else it will come back to bite you in the behind or better yet the child’s behind. Their are many investment vehicles you could open up prior to the baby being born such as the 529 College Savings Plan. This is a tool used to make sure your child goes off to college and it gives you tax breaks.
6.) Buying a Bigger House than you could afford !
Law states that your housing bill shouldn’t exceed 28% of your income. No matter if it is rented, financed through a mortgage, and including the bills. Most of us want to live life like the joneses throughout our earlier years and we spend more than half of our wealth on a house we don’t need. We become more and more in debt, have kids, and realize it wasn’t worth the hassle in the end. There are many wonderful cheap houses in America. There is now need to run to a gated community or in the “White neighborhood” as I should call it. May sound biased but this is how we call it coming from the infested ghettos and HUD Housing. Anyway, it is important you tally in your Housing expenses and don’t spend a large part of your wealth on a house that could go down in flames any giving day. Your retirement counts on you to make better decisions.