GoBankingRates recently published an eye-opening article highlighting eight mistakes that even well-prepared retirees can make, especially surprising ones like underestimating healthcare costs or failing to adjust withdrawal strategies as circumstances change.
Wealthcare’s Managing Partner, Michael Boggiano, is quoted several times sharing his real-world observations. He notes that some retirees
“underestimate the financial impact of significant healthcare costs … Some of these out-of-pocket expenses can add up to hundreds of thousands of dollars over the course of one’s retirement.”
and warns about risks beyond medical bills, such as cognitive decline:
“a lot of retirees don’t account for their cognitive decline… Retirees leave themselves vulnerable to costly mistakes or even fraud when they don’t have these things in place.”
He also stresses the need to adapt withdrawal strategies based on market conditions: “Failing to make changes to their withdrawal strategy … as market conditions change, a fixed withdrawal rate can deplete savings.”
