Even the best laid out plains can have unexpected surprises and road bumps. This is a truism in retirement, where you need to plan for decades of living without a job to support your financial expenses.
With that in mind, here’s how to plan for some hidden retirement expenses that can catch you off guard:
Financially supporting your children
Often, most parents dust off their hands and assume their responsibilities for their children are done once they become adults (at least, financially speaking). However, more and more older parents are becoming burdened with the hidden retirement expenses of supporting their adult children.
However, just like airlines tell you to put on your own oxygen mask first, you need to take care of your own financial health before assisting others. By anticipating your own retirement needs, you can than incorporate feasible costs for your adult children going forward.
Inflation
Although inflation has always existed, many look at it through a year-to-year lens, and don’t anticipate how their spending power will shrink over the many years before retirement. It’s one of the largest hidden retirement expenses you need to be aware of, because without a well-laid out investment plan that matches or beats inflation, you’ll be left holding a very small nest egg by retirement.
By avoiding savings accounts, and utilizing a smart long-term investment portfolio, you can avoid this expense and watch your wealth grow instead.
Learn more about anticipating hidden retirement expenses
At LexION Capital, we help clients avoid getting blindsided by retirement expenses by working individually with each client to determine their exact future needs and wants. We then craft specialized investment portfolios to ensure their retirement is financially worry-free. If you’d like to learn more about our retirement planning services, reach out to us today.
