Once you reach the age of 60, you’ll have to start thinking about getting retired. You will also need to consider whether you’ll even be able to do that or not.
You should at least have ten times you final salary saved at the time of retirement, in addition to the extra retirement funds that you’ve been saving for a better part of your life.
While you’re still young, and can read about retirement and how to plan your retirement in a good manner, you should consider it without any further delays. However, for the people in their 60s, here are some of the biggest mistakes to avoid when it comes to planning for retirement.
Having Less Investment in Stocks
Many try selling their stocks, and invest in fixed income assets with low risk when they start nearing the age of 60.
However, reducing your equity exposure to almost zero will be one of the biggest mistakes you can even make when planning for retirement. Money in your investment portfolio grows with inflation, and you should keep your money in your investment portfolio intact when nearing your retirement.
You should invest in short term, mid term and long term stocks, and should wait long enough to let them mature.
Spending a Lot of Money
As you nearing your retirement age, you should save more money, spend less, and should decrease your debt. As a rule of thumb, you shouldn’t buy things with double digit interest rates. The most amount of interest on your should be paying for is 5%. Remove anything above that from your credit.
If it is a home mortgage with an interest rate of over 4.5% and you can’t repay it in one go, you should consider refinancing.
These were some mistakes you should avoid when you’re nearing your retirement age.