Beware Of Misleading Retirement Advice

Retirees in this present time may not likely be having the time of their lives. The battered economy in the country that has continued for several years now may have likely eaten up a good chunk of whatever retirement fund a lot of people may have set aside. And with the changing economic climate, there may also be some retirement advice that may no longer be held as true at this time. They can even become misleading to a fault when those next in the retirement line try to heed them. Here are some of those misleading retirement advice to be aware about.

Time is important to grow that retirement nest egg.

While early preparation and ample time may help most people prepare from their upcoming retirement, it may not always be true today. It is true that people can save and invest more money for their retirement fund if they start early. But it is not a guarantee that their retirement nest egg will grow over time. What matters more is where that fund is invested. There are lots of people who have started saving early for their retirement but have to endure costly losses because they have invested heavily on the stock market, which has taken quite a beating right at the start of  the economic crisis a couple of years back.

The fund stops growing at retirement.

Many people seem to believe that a fund stops growing at the time of retirement. One big reason for this is that the paycheck stops coming. But the fund that has already been set aside for retirement actually can still keep on growing. It is only that paycheck that actually stops coming. In order to make this growth last, new retirees may consider not splurging right away after retirement. Living within means for as long as possible can help stretch out that retirement fund as it continues to grow way, way into one’s retirement.

The home is a major retirement investment.

Many people have long believed that buying a home can become a stable investment for retirement. This may not be the case today. Because of the housing crisis that plagued many parts of the country, homes have gone through a drastic decrease in value that has lingered up until now. There are cases where the current price of many homes may be considerably lower than when they were fully paid for by its owners. And with a stagnant housing market at present, it may be quite difficult to get a good deal for the home that would be considered as a comfortable retirement fund. Faced with such issues, one can realize that considering a home property as a stable retirement investment is not always true. It currently falls into many of those misleading retirement advice being offered given the current situation.

 

Posted by Ardent Editor on Oct 20 2011 in Retirement 101 Tags: , , , ,

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