Avoid Sabotaging Your Retirement Plan with These 5 Tips

retirement sabotage

Folks frequently start thinking about long-term planning around the beginning of each year, which means retirement might be on your mind these days. Market volatility is causing even more people to reconsider the ways in which they’ve saved for retirement. Many may start to get cold feet and consider liquidating funds amidst the potential bear market.

Why People Are Thinking About Changing Their Retirement Plans Right Now

If you’re reading this article, you’re probably feeling a push to make some big financial changes. Why?

  • Market volatility. Times of uncertainty might prompt you to look to the future. Try to avoid making rash decisions while the market is in flux. With the threat of a bear market looming, you might feel the urge to try and mitigate financial issues[1]. Instead, you should pause and figure out what is actually in your best financial interest. 
  • New year, new plans. The fresh start of a new year often makes people desire to work towards their best self: hitting the gym, eating greens, hanging out with loved ones, and doing all the “right” things. The holiday season heading into early January is rife with big declarations about what the new year will look like[2]. This mindset can easily bleed into your financial planning, but only if you let it. 

The instinct to change your retirement plan is common, but not always fruitful. Use the sound advice provided below to stop yourself from making impulse moves.

How To Avoid Sabotaging Retirement Plans

You’ve put so much time, effort, and money into your retirement plans. How can you avoid making a mess of your carefully crafted plans? Read on!

1. Stick With Your Plan Through Volatile Markets

You need to accept market volatility. This is a particularly helpful piece of advice in this financial climate as talk of a bear market circulates. Truthfully, volatility is a standard part of the investing process. While stocks might waver, long-term markets are more dependable. Long-term markets are dependent on earnings growth, change in valuation, and dividend yields. 

You can plan for volatility in retirement by creating an emergency fund. So, just in case you happen to retire in a volatile market, your personal cash flow will not suffer as intensely. Speak with a trusted financial advisor about how to set aside funds for retirement emergencies. 

Stay the course. If you change your savings plans every time the market dips, you’ll end up changing them too frequently. Instead, anticipate market volatility and create a long-term, sustainable plan that rides out volatility, rather than reacts to it[3]

2. Avoid Overspending if You Feel Secure

When you are experiencing a period of financial security, you might feel the instinct to increase your spending. Sure, this could feel comfortable in the moment, but overspending can seriously impact your long-term financial plans. 

You deserve to treat yourself, just try not to go overboard. Put a cap on big purchases like new homes, cars, and renovations. Indulge in new hobbies, but keep your retirement budget in the back of your mind[4]. You can live a fulfilling life without dipping into your savings.

This piece of advice mirrors the one provided above regarding market volatility. Whether you feel scared or secure in the current market, do not let those feelings dictate your retirement planning. Reactionary decisions will not serve you down the line in retirement – when it all matters the most. 

If you want to make some worthwhile purchases, try to focus on budget-friendly choices that benefit your day-to-day life.

3. Avoid Risky Career Moves

How many years have you worked at your current job? Probably enough to have a long-standing history with your employers and comfortable savings for your retirement. You might feel an itch to try something new and take a risk while you feel financially secure[5].

Risky career moves could sabotage your retirement plans entirely. Rash decisions threaten the stability you have worked so long and hard to achieve. You can easily blow through life savings while chasing the next big idea or a fatter paycheck.

The impulse to try something new isn’t wrong. On the contrary, you should seek out stimulating activities… but make sure they’re outside of work. Your prolonged financial security depends on your ability to keep risks on the racquetball court or in the art studio, not in your line of employment. Sport an On-the-Go Wrist Watch Medical Alert + GPS + Pedometer during your gym time. It looks just like other sport watches, but with a built-in SOS button, just in case.

If you are experiencing feelings of depression or anxiety related to your work life, speak with a mental health professional. You might be able to work out some of those issues and boost your mental health. This preventative measure could also prevent you from making impulsive professional decisions and jeopardizing your financial future.

4. Try Not to Overindulge Kids and Grandkids

This rule will be especially hard for some older adults! It’s completely normal to want to shower your loved ones with gifts, opportunities, and financial support. However, not everyone can afford to do this. Paying too many of your children’s and grandchildren’s expenses can leave you in a precarious financial situation for retirement.

Another common mistake seniors make is using distributions from their own 401(k)s to fund their children’s or grandchildren’s college tuitions. If you engage with this practice before the age of 59.5, you might face a 10% penalty

The instinct to provide for your family isn’t wrong. Work with a trusted financial advisor to figure out an amount you can set aside for just this purpose. That way, you can support your loved ones (within reason) while also funding a retirement that suits your needs. 

If your financial situation allows for this kind of familial support, then this piece of advice does not apply to you. Assess your retirement plan and figure out what your financial parameters for family support really are.

5. Rely Only on Vetted, Professional Advice

Working with a financial professional is one of the best ways to protect your retirement funds. This time of year, and in this particular market, you might feel like it’s time to make big money moves. Discuss your potential plans with a financial adviser before making any permanent changes. 

Your friends, family, and coworkers will all have something to say about your financial situation, but their opinions should not hold more influence than professional guidance. Unless you have a trusted financial relationship with a loved one, avoid going to personal connections with questions about your retirement planning. 

Additionally, you might feel like you can manage retirement planning on your own. There are tons of advertisements and social media campaigns geared toward managing your own finances. While that may seem like a freeing idea, it couldn’t be more misleading. Perhaps not everyone needs a financial adviser’s professional advice, but many people do. Choosing not to work with a trusted professional could derail your long-term plans. A financial adviser can counsel you against some of the pitfalls mentioned in this article, as well as guide you in the direction of a more stable retirement. 

Adding a Medical Alert System to Your Retirement Plan

Your retirement plan involves some serious forethought. Part of retiring is figuring out where you want to live, who will care for you, and what tools you will need to make all of it happen. Most of these decisions are ones that will take a lot of deliberation; they might even make you emotional. A medical alert system, or personal emergency response system, is a welcome part of a retirement plan. It’s a simple retirement decision that won’t cause you stress or cost much money, yet the benefits are huge. 

Alert1 is a particularly good choice for retirees. Whether you’re hoping to retire in Florida or near the grandkids, you can count on Alert1 24/7 Command Centers for support. You might not have figured out your full caregiver situation yet, but you can trust that you’re in good hands with the Command Center operators. These highly trained and certified agents stay on the line with you until help arrives, even if you are unable to speak.

You’re already thinking about your long-term health, safety, and happiness while you make your retirement plan. An emergency button alarm for seniors is a low-cost, high-benefit addition that gives you the ability to enjoy your retirement comfortably and securely.

Alert1 Medical Alert System Options for Your Retirement

Here’s the fun part: picking out your alert necklace, bracelet, or watch. You have options when it comes to which style and features you want. The In-Home and On-the-Go devices both come with different wearable options. You also have the combination In-Home + On-the-Go + Fall Detection.

You’re probably already handling numbers and calculations for your retirement planning. Alert1 makes it easy to add a medical alert system to your budget. These affordable prices ensure that you can still live “the good life” in your retirement.

Your long-term care and wellness are directly related to your financial planning. Make an easy decision for your health and for your budget by including an alert system for seniors in your retirement plan.

 

 

 

 

 





[1] Lam, Jackie.2021, Dec. 10. How Investors Should React to Bull and Bear Markets: Set It and Forget It. Time Magazine. How Investors Should React to Bull and Bear Markets: Set It and Forget It.

[2] Bennett, Howard. 2018, Dec. 27. Why do we make new year’s resolutions? The Washington Post. Why do we make new year’s resolutions?

[3] Reinicke, Carmen. 2020, Sep. 24. How to navigate volatile markets during retirement. CNBC.com. How to navigate volatile markets during retirement.

[4] Mathers, Connie. 2021, Feb. 17. 37 Fun Hobbies and Activities for Seniors During Retirement. DevelopGoodHabits.com. 37 Fun Hobbies and Activities for Seniors During Retirement.

[5] Fielding, Sarah. 2021, Mar. 23. Wow, Is That the Time? Dealing with Feelings of a Midlife Crisis. Greatist.com. Wow, Is That the Time? Dealing with Feelings of a Midlife Crisis.