Financial Focus: Avoid financial mistakes during retirement

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When you retire, you’ve learned a lot about all sorts of things, helping you avoid some of the mistakes you made earlier in life. However, you may still be susceptible to financial missteps specifically related to your retirement years. How can you dodge these errors?Consider these suggestions:♦ Manage your withdrawal rate carefully. You will likely need to tap into your retirement accounts – your IRA and 401(k) or similar employer-sponsored plan. But you should establish an annual withdrawal rate that’s appropriate for your situation. By withdrawing too much each year, especially in the early years of your retirement, you risk outliving your resources. You may want to consult with a financial professional to determine the withdrawal amount that’s right for you. (Keep in mind, though, that once you turn 72, you will be required to take out at least a certain amount each year – based on your age and account balance – from your traditional IRA and 401(k) or similar plan.)♦ Don’t underestimate health care costs. Once you turn 65, you will be eligible for Medicare, but you may still need a Medicare supplement plan and will probably also incur other expenses. In fact, A healthy 65-year-old couple who …

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