In our last blog we began looking at some of the biggest myths surrounding the world of retirement planning. As we all know, planning for your retirement is now harder than ever and can be confusing for most people. With everything you must consider when planning, it’s easy to be led astray by misinformation and myths. Today we’re back with some more myths that circulate around the retirement planning world.
- You should put all of your retirement savings in CDs and bonds. When you consider that all investments have a trade-off – even safe investments – most people agree that it’s not good to be too aggressive. However, it’s risky to be too conservative with your money, too! When considering the effects of inflation and how it can affect your purchasing power as a retiree, putting all of your money in CDs and bonds soon becomes less safe.
- Saving for your child’s college education should always be top priority. Of course we all want our children to have the best opportunities and become productive members of society, right? While saving for their education is important, it should never come at the cost of your retirement. Consider the fact that it’s much easier to borrow money for education but not that easy to borrow for retirement.
- All you need is medicare for your retirement. While medicare can absolutely be a lifesaver for those of us who are 65 and older, as well as those of us who are younger with disabilities, the coverage should not be considered comprehensive. You need a medicare supplement policy to help bridge the gaps and cover what medicare doesn’t.