The Personal Finance Podcast The 7 Biggest Mistakes People Make in Retirement (And How to Avoid them!)
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Sep 10, 2025 Dive into the key pitfalls that can derail a happy retirement. Discover the perils of overspending early in retirement and why the 4% withdrawal rule is essential. Explore the importance of strategic planning to combat rising healthcare costs and ensure your portfolio remains balanced. Learn smart credit management tips and the significance of tax planning to avoid unexpected liabilities. This insightful discussion provides actionable strategies to secure a financially stable and enjoyable retirement.
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Protect Your Portfolio Early
- Stick to a conservative initial withdrawal (around 3.5–4%) to preserve portfolio longevity.
- Use dynamic withdrawals and cash reserves to avoid overspending, especially in the first five years.
Create Cash Buckets
- Build 2–5 years of cash/bond reserves to avoid selling into downturns.
- Divide retirement into buckets: essentials, wants, and legacy to control spending.
Healthcare Is A Major Retirement Cost
- Healthcare becomes the second-largest retirement expense after housing and grows with age.
- Medicare leaves sizable out-of-pocket costs and excludes many services like dental and long-term care.
