7 Common Retirement Mistakes That Expats Must Avoid
When you have spent the better part of your life abroad, with the wing to your work commitments, you should want your retirement experience to be as enriching as your work life has been.
Having said that, it could be difficult to walk away from the life you’ve known and create a new one for yourself in a place far away from your home. So, in order to provide you with some insights on retirements, we have presented some advice on the common retirement mistakes and suggested ways to avoid the same.
#1. Getting swayed by too-good-to-be-true offers.
Hard work, meticulous planning, and years worth of wealth management are the basis of financial security after retirement. Cliché as it may sound, there are no shortcuts. Yet, according to research, expats the world over have lost hundreds of millions of dollars by falling for “get-rich-quick” schemes and other such scams.
So what do you do to prevent such mishaps from happening? In this case, the experts recommend you type in the name of the company or the service provider along with the key phrases like “complaint,” “review,” or “scam,” in Google or any other search engine. You can also consult with the local consumer protection office or your state attorney general to check if it has registered any complaints of this nature.
#2. Delay in saving for retirement.
The biggest regret for any working individual has to be waiting too long to save up for retirement. In fact, studies have revealed that people aged 50 and above expressed this regret more than their younger counterparts.
It’s fairly common for people to start saving aggressively for retirement until they step into their 40s or 50s. However, the good news for such investors is that they might still be left with sufficient time to change their savings behaviour and achieve their objectives, but they will have to be proactive and disciplined about their savings.
#3. Becoming too cautious as an investor.
Most financial experts suggest people be more conventional with their investments as they get older. According to these experts, moving to a more evenly distributed array of stocks and fixed income investments with approximately 40-50% in equities tends to be fruitful. “Basically, these experts rehash that age-old tenet that older people don’t have time on their side to withstand the lows in the market,” says Justin Maxwell, an expert on assignment help from MyAssignmenthelp.com.
But, standing at 2018, it’ll definitely be wise for you to ignore that outdated advice and carry on with the same balanced, diversified investment that you have now.
#4. Avoiding the stock market.
Being skeptical about stocks because they come off as too risky is a mistake that expats are commonly known to make, especially while attempting to save for retirement. It’s undeniably a fact that the market comes with its share of ups and downs.
However, in terms of such investments, it’s always best to opt for exchange-traded funds and low-cost mutual funds because they present a reasonable way to acquire a piece of hundreds or even thousands of companies without having to spend on individual stocks. Also, remind yourself not to retire your stock portfolio once you get to the retirement age.
#5. Being too eager to get busy after your retirement.
Our lives depend on different objectives at different stages. As kids, we knew we wanted to be a teacher, doctor, lawyer, etc. Then many of us had to decide which college to attend and which subject to major in. Then we had to set the aspirations for jobs, families, homes, etc. Similarly, you will have some aspirations for the later stage of your life as well.
That’s definitely something worth pondering over. In this case, what’s important is to take your time. “Think about how you are going to spend your post-retirement, whether you want to engage in an activity and what kind of options are there for you to explore,” suggests academic assignment helper Annie Benson. It’s not a race, so you shouldn’t have to rush through anything. If you plan well, you are not likely to miss the chance.
#6. Not sparing a thought about property planning.
If you think estate planning is for the wealthy, then you are mistaken. Even if you have modest assets, like a home, a car, and a bank account, you should also prepare a valid will to define who gets what and who will assume the responsibility of dispersing your money and possessions.
If you don’t prepare a will, your property is subject to your state’s probate laws. And in the process, your assets could get embroiled in court and create a financial hardship for your heirs. Also, in the absence of a will, a judge might ultimately award your assets to an unintended party like an estranged spouse or a distant relative.
So, retirement is a perfect time to go through your existing property-planning documents and prepare the ones you haven’t. All in all, it’ll be wise for you to start preparing the will.
#7. Planning to work for an indefinite period.
Even when expats plan to work past their retirement, they need to consider that their plan could easily backfire.
There could be many factors that force people to stop working and retire early. For example, it could be health-related issues (either of your own or someone you love). There could also be employer-related issues like downsizing, buyouts, etc. Also, the inability to upgrade your skills is another major reason that makes older workers struggle with maintaining their position on the job. So, it’ll be best to assume the worst, saving early and often.
Expats should keep the aforementioned factors in mind while planning for their retirement. Following the tips will ensure that they can lead a fulfilling and secure life in the days to come.
Jedda Cain is a business head of a leading publishing house in Australia. She has pursued her MBA in Finance from the University of Melbourne. She has been chaired and moderated many of the local business summits. She has also been part of Essay Assignment Help as an academic expert. When Jedda isn’t working, she is up to trekking and collecting antiques.