Carlos Dias Jr. is a Wealth Advisor and Fee-Only Financial Advisor at Excel Tax & Wealth Group and MVP Wealth Management Group based in the Orlando, Florida area. He offers his clients a full range of tax, financial, and estate planning services such as tax preparation, fee-only planning, investment advisory and management, wealth management, asset protection planning and debt reduction and management. For more information or to connect with Carlos, you can access his profile GuideVine profile, https://www.guidevine.com/financial-advisors/florida/carlos-dias-jr/551567059283a4299f00000a.
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I’m Carlos Dias, a Wealth Manager, and here are three common retirement planning mistakes.
Number one, overlooking fees. 401(k)s, IRAs, and other retirement plans have fees that can add up with time. According to a report on PBS’s FRONTLINE, the average actively managed Mutual Fund charges 1.3 percent in fees on the total in the account, not on the year’s gain.
Number two, overreacting to market corrections. Sometimes during a crisis, you might respond by moving your account to cash. There might be an opportunity to limit these losses, but that depends on what type of adviser you’re working with. In 2008, several sold their stock at losses, and went to cash, but never reinvested and lost opportunity. Even though, the saying is buy low, and sell high. Many will buy high and sell low.
Number three, underestimating the cost of health care. Typically, a 65 year old couple needs to plan for about $250,000 to cover medical bills in retirement, beyond what Medicare covers.
Number four, not planning for long-term care. Besides medical bills, long-term care is another major issue. According to the Administration on Aging, one out of three have a plan in place, but most likely, two out of three will need some form of service.