Let’s unpack six of the top retirement misconceptions, from whether it is okay to splurge in retirement, to the necessity of paying off your mortgage before you retire, and the real risks that retirees face beyond just a stock market crash. 

With a focus on helping family stewards make smart decisions for a secure financial future, I share practical advice, real-life scenarios, and encouragement to help you confidently prepare for and enjoy your retirement years.

If you want to separate fact from fiction and build a retirement plan that truly fits your life and goals, then this episode is for you. 

Retirement is often framed as the finish line in your financial journey, but the path leading up to and through that milestone is cluttered with well-intentioned advice, social media sound bites, and downright misleading myths.

As Scott Wellens, certified financial planner and host of the Best in Wealth podcast, points out in episode 260, it’s time for successful family stewards to challenge conventional wisdom and make decisions grounded in reality, not rumors.

Let’s unpack and expand on six of the most common retirement myths, using Scott’s insights to guide your way toward a smarter, more satisfying retirement.

Many savers believe that a single splurge in retirement, a long-awaited RV, a dream vacation, or a lavish family gathering, could derail their entire retirement plan. If you’ve saved diligently and want to use a portion for a one-time purchase, the impact on your annual withdrawal can be minimal.

For those following the “4% rule," buying a $50,000 RV from a $3 million portfolio reduces sustainable annual withdrawals by only about $2,000, a small sacrifice for a lifelong dream.

Retirement is about enjoying the fruits of your labor. With proper planning and a clear understanding of your cash flows, strategic splurges are not only possible but can enrich your retirement experience.

It’s noble to want to support causes after you are gone, but waiting to give can rob you of witnessing the impact your generosity brings. Giving while alive has both tangible and intangible benefits: not only do you receive immediate tax deductions and may reduce potential estate taxes, but you also get a front-row seat to the good your money is doing.

A thoughtful plan lets you balance living well and giving generously today, maximizing both legacy and personal fulfillment.

Is hoarding your savings really the best way to reward yourself after a lifetime of work? Many retirees spend less than they could, leading to regrets about missed opportunities. The ultimate goal is to utilize your resources to create lasting memories, whether that’s through travel, experiences with loved ones, or acts of generosity.

Do not let fear lead to deprivation. With a flexible plan and clear spending guidelines, you can confidently enjoy and share what you’ve built.

Being mortgage-free sounds ideal, but it’s not a strict requirement. Many retirees successfully manage their remaining mortgages as part of their retirement strategy. Don’t rashly withdraw large sums from tax-deferred accounts to pay off a mortgage, which could trigger an unnecessarily high tax bill.

Evaluate your circumstances, and consider a phased approach or maintaining a low-interest mortgage alongside a diversified portfolio.

Reverse mortgages once carried a shady reputation, but increased regulation has made them a much safer tool. While not for everyone, reverse mortgages can offer a critical safety net, especially for those planning for longevity, unexpected expenses, or wanting to front-load spending in the early, active years of retirement.

Work with a fiduciary advisor to determine if a reverse mortgage fits into your personalized retirement plan.

Markets can be volatile, but Scott highlights that portfolio diversification and strategic withdrawal plans shield most retirees from a single crash becoming catastrophic. Instead, the growing threat is fraud and scams, especially as retirees become more vulnerable to sophisticated fraudsters.

Stay vigilant against scams, practice good digital hygiene, and educate yourself and your loved ones on how to protect personal information.

The myths surrounding retirement can cause unnecessary stress, fear, and missed opportunities. By debunking these misconceptions and working with trustworthy, fee-only fiduciary advisors, you can approach retirement with confidence: ready to spend, give, and enjoy your wealth without regret.

The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the US Securities and Exchange Commission in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

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