5 Wealth Management Mistakes That Seniors Need To Avoid


When it comes to wealth management, seniors often need to realize that they're in a particularly susceptible position because they've generally already finished their careers and are somewhat limited in terms of income. 

Any increases in income for seniors are generally allowed for by investments. However, seniors need to invest relatively conservatively to avoid comprising their ability to maintain the same living standards in the years to come.

The following are five wealth management mistakes seniors need to avoid to ensure a healthy and reliable income over the long term:

Having a portfolio that's not adequately balanced

A portfolio that's well balanced is important for investors of all ages. However, it's particularly important for seniors who need to hedge against risky investments to avoid excessive loss. As a senior, it's important to be aware of the fact that life expectancy is increasing and retirement plans/pensions need to sustain people for longer than ever before. 

For seniors, balancing out a portfolio means having an adequate quantity of low-risk investments and investing in stocks on a global level through index funds. 

Neglecting to periodically review their financial situation and their current wealth management solutions

Retirees are always at risk of growing complacent with their financial situation and neglecting to look at financial issues until it's too late. Though you should be enjoying retirement, you need to take the time to review your financial situation now and then and optimize wealth management solutions for the current market climate.

Investing too heavily in stocks and not enough in bonds and CDs

There is always some risk in investing in the stock market. You need to protect yourself against this risk by investing at least some of your financial assets in more secure investments like bonds and CDs.

Neglecting to look at management of their health care costs critically

In the United States, health care costs are currently very uncertain. Under the Trump administration, seniors can expect a lot of change in health care costs and regulations. It's also uncertain what's going to happen after the Trump presidency regarding health care reform and medical costs.

Seniors are the ones who are the most affected by medical care costs because they are the most likely to need constant medical treatment. As such, a senior looking to protect his or her wealth needs to be keeping an eye on news and updates regarding health care reform.

Not limiting spending

When you've got children and grandchildren to take care of, it's easy to let yourself go with spending. You may consider that you've worked all of your life so that you can afford to be generous with your family. Nevertheless, you need to avoid getting carried away with your generosity or you could compromise your financial security in the years to come.


21 March 2017

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