Myth 4: I can’t make investments right before retirement
Just because you’re getting closer to retirement doesn’t mean you can’t still make certain types of investments as part of your strategy to boost your retirement funds. Not everyone can afford to make high-risk (and high-yield) investments, but low-risk investments are a viable and lucrative option to let your money work in your favor.
There are various ways to earn attractive returns on your investments like lending money to small business owners. It bears little risk and doesn’t require large investments.
Myth 5: I can live on less in retirement
If your justification for not saving for retirement is that you will not spend that much money in your golden years and your cost of living is poised to plummet anyway, you might receive an unpleasant surprise once your paycheck is out of the picture.
When planning for retirement it’s crucial that you take future inflation into consideration. If your retirement income doesn’t keep up with inflation, what you have today could mean less in the future. This means you’ll have less spending power and slim chances of affording to travel, move to a new home or invest in some of your hobbies. Also, mortgage costs, if you don’t pay it off by the time you retire, can account for 36.5% of the average annual expenditures of a 75-year-old retiree, according to the U.S. Bureau of Labor Statistics.
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