Risks That Can Derail Retirement
The day you retire, a weight on your shoulders seems to remove itself as you no longer need to work to survive. The years of punching a clock, worrying about losing a job and making uncomfortable small talk with that guy from accounting are over.
But, among the bliss that is your 20-year vacation, there is a list of risks that retired individuals face more now than when they were working.
Economic risks
These may feel obvious to some. Since you’re now living off your assets rather than just growing them, you put yourself at the mercy of the financial markets. Market volatility can become a scary proposition at this stage of your financial life If you’re too aggressive with your investments, a market dip could obliterate your plans and force you to return to work. If you’re not aggressive enough, you may not be keeping up with inflation and run the risk of outliving your money.
Finding the investment strategy that is just right should be done with a professional and be complemented by adequate contingency planning to keep up with the all “what ifs.” Finding employment after years of retirement can be incredibly difficult, so if you’re not certain you have properly prepared for retirement, do not retire.
Read more @Forbes
