Editor’s Note: This is Part 1 of a two-part series on different ways that a retirement plan can go bust. Stay tuned for the second part of our series in the coming days.
Some investors face disadvantages in retirement due to a lack of planning. Lackluster savings, minimal guards against risks, no real strategies for high-cost healthcare or long-term care… These are just a few of myriad ways in how someone may be ill-prepared.
But there is also the other side to consider. How about when someone does have an effective plan set? Then it’s different.
Say that you have created what you feel is a rock-solid retirement plan. When you finally enter this phase of life, chances are you are quite confident about your financial future. Still, planning isn’t a sure guarantee of success. Oftentimes, the question of whether someone sticks to their plan is just as important.
What you may not realize is there are several factors that could actually take a retirement plan off course. Those factors may range from being an overly generous parent or grandparent to losing your spouse and needing to adjust your lifestyle to a reduced income.
While it may not be rocket science or a magic formula, knowing these common plan-derailing pitfalls might help you avoid them. Read More