Yesterday was Groundhog Day and last year we discussed the movie of the same name and how financial planning could help us stop a cycle of financial missteps. We know that unlike the character in the movie “Groundhog Day,” we do not get to live life over until we get it right. This is why Morningstar published “In Hindsight, Here’s What Retirees Wish They’d Known,” to help readers learn from the mistakes of others as they move forward.
Some of the comments gathered reflect a need for more retirement planning; others focus on the kind of unplanned adjustments that are difficult to predict ahead of time.
Length of Retirement: Several people commented on adjustments they made after years of retirement. Many of us may live longer than we imagine and we need to prepare for that. However, this is not just about people who run out of money: at least one person who worked past of the age of 70 commented that in hindsight it would have been possible to retire earlier.
Health and Wealth: Some of the retirees Morningstar spoke with talked about how they did well managing their money but they did not take care of their health. Health care costs are a huge challenge in retirement. Take good care of yourself cannot guarantee that you will not be faced with daunting health care costs but some prevention will help keep certain ailments at bay.
Lifestyle: Some people know themselves well enough to know if they will miss their career and work. Others may be surprised to find that they do or do not miss work. In addition to money, the retirees discussed the need to prepare not only for the expense of retirement to also give thought to how and where you want to live.
Overall, when it comes to funding your golden years adequate preparation can help you weather the unexpected during retirement and a Fee-Only financial planner can help with that.