If They Could Do It All Over Again
Would of, Should of, Could of
When folks nearing retirement have to delay their retirement date because they did not accumulate enough money to afford to retire, they have regrets. When people already living in retirement are limited on the activities they can participate in due to lack of funds, they also have regrets.
These investors look back at what different financial decisions they should have made during their working years to avoid being in their current financial situation.
Avoid Retirement Regrets
#1 – Made Retirement Planning More Of A Priority
They wished they had saved more money for retirement. Living on a budget would have made more financial sense because they could have monitored where they were spending their money. The budget process would have freed up more money for investing. Are you living on a budget?
#2 – Started Saving For Retirement Earlier
As they look back they know that they should have opened an IRA or a 401k retirement account when they started their first job. Instead they waited until they got their finances in order. In other words they did not start investing until it was the “right time”. You know, after they paid off their college loans, bought a home, started a family, etc. They now recognize their error, there is no “right time” to start investing for their financial future. Are you waiting for the “right time”?
#3 – Avoided Wasting Money
They regret spending so much money on frivolous things. The money they would have saved could have been invested. Yes, the cafe lattes seemed important at the time, but as they look back, they realize how unimportant they really were. They now understand that they could have found a cheaper way to drink coffee. Do you have a frivolous item that you spend unnecessary money on?
#4 – Avoided Credit Card Debt
The money they wasted on credit card fees and interest payments could have been put to better use; invested in their retirement plans. They realize now that they did not “need” most of the stuff they bought anyhow. They just “wanted” it. Are you carrying too much credit card debt?
#5 – Established Financial Goals
After they opened their retirement account they should have set their personal financial and retirement goals. They should have set a retirement date. They should have used a retirement calculator to determine how much money they would eventually need to afford retirement. That would have given them a target to aim towards instead of investing aimlessly with no set purpose. Have you set your financial goals?
#6 – Invested Regardless Of Market Conditions
Instead of jumping in and out of the market every time the market performed poorly, they wished they had continued to invest regardless of market performance. Not only would that have saved them a lot of grief but perhaps their investments would have produced a better rate of return. Are you an investment jumper?
The best lessons in life seem to be those that are learned from the mistakes made by others. Investors that have come before you recognized 6 major retirement mistakes that they made. Will you make those same mistakes? Will you learn from those mistakes and avoid the same retirement regrets? The choice is yours.