web analytics
September 2, 2014 / 7 Elul, 5774
At a Glance
Blogs
Sponsored Post
Jerusalem Mayor Nir Barkat (L) visits the JewishPress.com booth at The Event. And the Winners of the JewishPress.com Raffle Are…

Congratulations to all the winners of the JewishPress.com raffle at The Event



The Three Worst Pre-Retirement Planning Mistakes

Doug Goldstein

How do you visualize your retirement years? Most people hope that they will finally be able to do the things that they never had time to do during their working years. Very frequently, folks anticipate retirement will be a worry-free time, full of enjoyment, and ample time to spend with family and friends.

As a financial adviser, I am often saddened to see retirees facing a different picture. I’m talking about people who are getting older but who can’t stop working because they don’t have enough savings to support themselves. The shortfall may come from a lack of savings, or may come from a lack of foresight in using their once ample funds. For instance, there are generous parents who give their children so much financial support that there is nothing left for them when they need it.

Very often, these are people who have worked hard and earned well. They have worked diligently to support their families, but unfortunately they have also made some disastrous mistakes. The three worst pre-retirement planning mistakes are:

1. Relying on government pensions. Even though you have paid your taxes faithfully over the years, the amount you receive back from the government should be considered a (small) supplement to your retirement income, not the only source. Social security was originally intended to provide financial support for only a few years, but with increased life expectancies, it’s becoming harder for Uncle Sam to continue making payments to all retirees. There’s much talk about pension size decreasing… so to be financially secure during retirement, it’s wise to make sure that you will have another source of income, such as a pension, IRA, 401(k), and other investments.

2. Thinking that you will never retire. You may really enjoy your work, and you are strong and healthy, so you are absolutely sure that you will always be working forever. Sadly, you don’t have a crystal ball and you don’t know what will happen. Counting on working until the day before your funeral isn’t a good financial plan.

3. Believing that you are too young to start thinking about retirement. You are never too young to think about retirement. In fact the younger you start, the better. Think of all the money you can save in a pension plan over 40 years as opposed to 20. The beauty of compound interest means that the earlier you begin saving, the harder your money can work for you.

To learn more about planning for old age, read why living too long may be a financial disaster.

About the Author: Douglas Goldstein, CFP®, is the director of Profile Investment Services, Ltd, a financial planning firm located in Jerusalem. He specializes in working with clients in New York, Florida, and Israel and is a licensed financial professional both in the U.S. and Israel. Securities are offered through Portfolio Resources Group, Inc., Member FINRA, SIPC, MSRB, SIFMA. Accounts held at Pershing LLC., Member NYSE/SIPC, a subsidiary of The Bank of New York Mellon Corporation. Neither Profile nor PRG gives tax or legal advice. Before immigrating to Israel, it is advisable to consult with a tax attorney who is knowledgeable about Israeli law. Doug’s newest book The Expatriates’ Guide to Handling Money and Taxes is available at www.expatguidetomoney.com. He hosts a weekly finance show, Goldstein on Gelt, on internet radio. Listen live or download podcasts. Toll-free from U.S. 1-888-327-6179, Jerusalem: (02) 624-2788. Follow on Twitter: @DougGoldstein or contact at doug@profile-financial.com.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

No Responses to “The Three Worst Pre-Retirement Planning Mistakes”

Comments are closed.

SocialTwist Tell-a-Friend

Douglas Goldstein
Current Top Story
Police set up roadblocks throughout the Sharon region and beyond to track down terrorists believed to have infiltrated the area.
Arab Terrorist Attack Foiled Near Netanya
Latest Blogs Stories
paramedikit-3

“I knew that being there would allow me to protect other soldiers.”

Kerry Repeats

JoeSettler asks what could still possibly be on the negotiating table with the PA after a summer like we just had…

Kurdistan Crisis

You did not want to listen because you could not blame my Israel.

iphone

Now everyone has easy access to the culture and all of its vices, both social and intellectual.

Connect the dots, please: All of these Muslim Arab terror organizations are connected.

“…while Hamas has been weakened it has not been destroyed…”

Jewish donors bought and donated the greenhouses to the Palestinians.

This week’s podcast discusses the need for transparency in international business dealings.

The new “Begin Plan” is an impending nightmare, it rewards the Bedouins for brazen land-grabbing.

There is absolutely nothing for Israel’s security in this American document.

Is it because of corrupt values and lack of meeting opportunities that we have a shidduch crisis?

Israel is fighting the war that none of the Western world has the ability or courage to fight.

Finish the job! Sayyem et a missima!סיים את המסימה!

Life after 50? You better believe it! Tips on how to prepare and enjoy life after retirement.

While I am no fan of the two-state solution, I think I have a solution for the Gaza strip. Let me make it perfectly clear that in no way do I believe a Palestinian people, nation or Arab State ever existed in the history of the world and certainly was not occupied by Israel. If […]

Hamas targeted the Erez Crossing when it knew that Gazans and Israeli Arabs would be there, out in the open…

More Articles from Doug Goldstein, CFP®
Goldstein 485x300

This week’s podcast discusses the need for transparency in international business dealings.

Doug Goldstein

Life after 50? You better believe it! Tips on how to prepare and enjoy life after retirement.

Marriage is not just about emotional fidelity but about financial fidelity as well.

Discussion on recent changes to Social Security benefits and how it will effect you.

Doug speaks with World Chess Cahmpion Magnus Carlsen.

Do Keynesian theories about government spending still apply today?

How can you prevent emotional baggage from holding you back?

This week Doug speaks with David S. Rose, entrepreneur, former angel investor, and founder of Gust.

Printed from: http://www.jewishpress.com/blogs/goldstein-on-gelt/the-three-worst-pre-retirement-planning-mistakes/2012/08/19/

Scan this QR code to visit this page online: