Home Improvement Guide

One of the biggest decisions that you tend to make in your lifetime is when you choose to buy your most prized asset. As we near our retirement age, there is no decision harder than asking yourself what to do with your golden egg basket, i.e. your life time savings. The first crucial decision lies on deciding when to roll out an individual retirement account and then how to invest in funds. Most of us get it wrong when we decide to purchase our retirement home and this can have negative implications on our life and on our physical and emotional state of wellbeing. Most of us plan our retirement life well in advance and dont stick to a financial plan to support our medical fees and lifestyle.

One of the most common mistakes is unadvertised fees that we neglect to take into account and thereby can end up paying lakhs, over a span of many years. This kind of expenditure has a major effect on your retirement savings. Similarly, many retired citizens ignore the hidden risks and this can prove disastrous. However, many retired people are prudent in how they plan for their future. They tend to be on their own and necessarily stick to learning everything step by step and naturally avoid making mistakes.

Today, there are unlimited agencies who educate pre-retirees on how to invest their life time savings and what risks they face when it comes to plan for a retirement home. There are six major mistakes retirees commit when deciding to buy their retirement home.

Moving to an unknown place where you dont have friends

A retired life gives you more leisure time to do the fun things you have always dreamed of. It allows you to look at reduced spending by choosing a place that is less expensive with a lower cost of living. Many of us make the mistake of moving out of a familiar neighborhood, far away from family and friends and this creates a difficult situation to cope up as you need to start from scratch and build of fresh network of friends and neighbours.

Dependent on your pension

When you arrive at your retirement age, you are forced to depend on your life’s savings, your pension. It has not always been a straight forward and completely reliable source of life savings. Many a time, you receive phone calls telling you that your company has been hived off and the acquisition partner is out of cash and you need to find a way to invest your income for yourself. Dont risk putting your money into the stock market and waiting for it to yield a profit. Try to look for a long term investment which can guarantee a pension.

Dont have too many accounts

It is a common mistake you come across. Too many retirement accounts across many organisations. Use one organisation as a stacking point or an umbrella for all your financial accounts and diversify into investments which finally show up as a single account holding.

Very often, you tend to determine on a lavish retirement home by borrowing cash from your retirement account. You should avoid moving inflows from your retirement fund. This can have a long term effect if you are nearing retirement age and sooner you are going to regret it.

Avoiding revising your financial plan

Try to hire a financial consultant or an accountant to help you understand and maximise your financial plan so that you can purchase a retirement home that best suits your budget and needs. It is important to be optimistic and have growth in your retirement. But it is even important not to lose your profits to taxes.

Dont think your health will stay good forever

Many of us are suffering from different health problems by the time we reach the age of 60. It is important you plan for a day when you are no longer healthy. A reputed nearby hospital is something you would want to consider as you grow older.

A very prudent plan while looking for a retirement home is to first jot down all that you would need and would like to do when you are retired. The retirement home that you determine on must have almost everything that you have noted down in the list. Most importantly, it should offer easy access to hospitals, preferred recreational and entertainment facilities.

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