3 retirement planning traps

Kevin Magna

April 22, 2011

Planning for retirement is a process that is always changing. Older adults have to take into account a variety of different factors, especially now, when many are suffering from the recent economic downturn. 

Cincinnati.com recently reported that there are some specific mistakes that retirees can make when they're setting aside funds for their future.

1. Don't rely on the house. While selling a home for more than it was purchased may have been a viable strategy a few years ago, that's no longer the case. The real estate market has become notoriously unpredictable.

2. Paying a financial advisor. Another problem that many retirees often encounter can arise when it comes time to pay financial advisors. Always check how these professionals will be compensated, otherwise some investments may be seriously dented by an unscrupulous compensation model.

3. Saving and caring at the same time. While not on the news source's list, millions of Americans across the country are taking care of their parents while trying to plan for their own retirement. This can take a serious toll on finances, which is why installing a senior alert system may be best. This device allows one to go to work without worrying about a parent, who can use the medical alert to instantly get help.