Financial planning is necessary for anyone facing retirement. It is a complicated process and there are many pitfalls to avoid. Here are some simple mistakes that you can avoid when doing your financial planning.

Don’t Forget Inflation

Inflation is simply the devaluing of the money that you have worked all of your life to save. Unfortunately it is inevitable that inflation is going to happen. On the average, inflation is about 3% per year. You need to include these figures into your financial portfolio in order to continue to maintain your lifestyle.

Over Dependence on Social Security

Social security is great at keeping seniors out of poverty. Don’t expect much more than that. If you are expecting to retire comfortably on social security you should think again. Social security is a great way to supplement your retirement funds and to keep drawing an income so that you don’t deplete your savings. Don’t depend on it too heavily as your primary means of income.

Update your Estate Plan

With the family looking much different than it has in the past, it can be critical for you to update your estate plan. This means making sure that life insurance, retirement fund and other documents reflect who you truly wish your assets to be left to. Not doing so can result in a messy fight over assets at an already emotional time.

For legal assistance with estate or financial planning, contact the experts at Stano Law group.