Potentially Dangerous Investment Mistakes Made by Baby Boomers
Nobody is spared from the effects of the economy – especially baby boomers. If you don’t consider certain factors you may experience financial problems in the future. You need to make good decisions with all of your investments, insurances and savings, especially with your Self Managed Super Fund.
Everyone is capable of making mistakes, and some are easier to overcome than others. Here are four investment considerations you should look at as a baby boomer:
- Forgetting About Health Care Costs
Many baby boomers are caught out by a sudden disability, so be prepared and factor in health care costs. You should choose health and personal insurance that offers long term care and monetary assistance if the situation should arise.
- Hiring A Financial Advisor
When finding a financial adviser you should find one that suits your needs. It’s in your best interest to hire an advisor who has plenty of experience in the areas you require. Ask friends and associates if they can recommend any good financial advisors with a lot of experience.
- Assuming That You Won’t Ever Have To Retire
You might be in great health now, financially and personally, but you never know what might happen in the future. Never say never – especially when it comes to retirement. Put as much money as you can into your SMSF . If you haven’t been saving because you think you still have a long way to go, you may not have enough money for your retirement. Fortunately, you can remedy that by putting more money into your SMSF as soon as possible.
- Jumping On Bandwagons
You shouldn’t narrow your investments down to what’s making money at the moment. Just because an investment is popular, doesn’t mean it’s going to yield big profits in the long term. By the time you hear that an investment is hot, the trend is probably getting ready to end. Make sure you work to a financial plan with your adviser.
You’ll have a better chance of having a financially secure future if you take these points into consideration.
This information is intended to provide background information only and does not purport to make any recommendation upon which you may reasonably rely without taking specific advice. In particular it should not be considered financial product advice for the purposes of the Corporations Act 2001.