Busting Retirement Myths

When it comes to retirement, the more you know, the better — as long as the information you’re getting is correct. You’ve probably heard a few things through the grapevine that are a bit far from the truth, which is why we’re here to set the record straight and bust a few of the most common retirement myths.

Myth #1: It’s okay to save later on because that’s when it’s easier.

Nope. It’s more important to start saving as early as possible to build yourself a solid nest egg for the future. Plus, it’s easier to save smaller amounts over a longer period of time than it is to save larger amounts in a rush down-the-line.

Myth #2: Social Security will cover your expenses.

That was never the intention of social security benefits. While it can help cover costs and provide you with an income during retirement, you’ll need more than just those benefits to be covered in case of an unforeseen circumstance, such as medical issues.

Myth #3: You have to retire at 65.

That “golden number” really only came about because that is when traditional social security benefits start paying out. Thing is, there is no set age that you’re required to retire. You could be forced to retire early for a number of reasons, or you could choose to work well into your 80s.

Myth #4: It’s better to invest in “safer” options in retirement.

In decades past, when life expectancy and inflation were much lower, it might have made sense to only invest in bonds and CDs, but that’s not the case today. The market is more volatile, so making your portfolio only these types of investments could be just as risky as investing in more aggressive options.

Myth #5: You’ll be bored.

A lot of people think retirement means a lot of free time with nothing to do. However, you’ll notice that hobbies, volunteer opportunities, and other day-to-day activities will quickly fill up your calendar.

Few things feel better than heading into the coming years knowing you’ve set yourself up for a comfortable retirement.  At  American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From investments to estate planning, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.