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Former college teacher. Textbook contributor. Personal finance writer. Passionate advocate of smart money moves to achieve financial success.
Planning for retirement is hard. That s why it s tempting to buy into rules of thumb that make it sound simple.
You ve probably heard these rules dozens if not hundreds of times. But repetition doesn t always make them right.
In fact, there are three big rules you probably shouldn t follow unless you want to risk ending up with too little money in your later years.
Image source: Getty Images.
Rule 1 to break: Save 10% of your income
Saving 10% of income for retirement is a common suggestion. It eliminates the problem of setting retirement goals, which can be complicated.
3 Retirement Rules You Should Break
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3 Retirement Rules You Should Break
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Retirement is supposed to be a well-deserved break after the pressures of the working world, but that doesn’t mean it’s easy. One of the toughest parts can be figuring out how much you can safely spend during retirement. If you take out too much, you run the risk of running out of assets later in life, especially if you’re fortunate enough to enjoy a long life span. If you take out too little, you might miss out on some of the fruits of a lifetime of savings, such as travel, dining out, gifting money to charity or family members, or spending more on leisure activities. Pinning down a number that’s neither too high nor too low is notoriously difficult, and the stakes are high.