The First Five Years of Retirement: Mistakes To Avoid

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The first few years after retiring can feel like a long-awaited reward—but they’re also a critical time for long-term success. As a retirement planner in Mississippi, Branning Wealth Management often helps new retirees navigate this stage with clarity and confidence. Avoiding a few common missteps early on can make all the difference in keeping your plan on track.

 

 

Overspending In The Early Years
Many retirees spend more in the first 12–24 months of retirement than they planned. Between home updates, travel, and newfound free time, expenses can quickly add up. Set clear spending guidelines and track your cash flow carefully. A detailed withdrawal strategy—especially one tied to market performance—can help stretch your assets for decades to come.

 

 

Ignoring Sequence Of Returns Risk
Market downturns early in retirement can have a lasting impact on your portfolio. If your first few years of withdrawals happen during a bear market, your long-term income could suffer. Work with your financial advisor in Jackson or Madison to build a plan that includes an emergency cash reserve and a flexible withdrawal rate that adjusts to market conditions.

 

 

Forgetting About Taxes
Taxes don’t disappear when your paycheck does. Between Social Security, IRA withdrawals, and potential capital gains, your tax picture can change dramatically in retirement. Reviewing your distribution strategy annually can help prevent costly surprises and reduce lifetime taxes.

 

 

Neglecting Healthcare Planning
Healthcare costs often rise faster than inflation, and Medicare may not cover everything. If you’re near Flowood or Ridgeland, explore supplemental coverage options early. Planning for long-term care—through insurance or dedicated savings—can protect your retirement income and reduce financial strain later.

 

 

Skipping Regular Plan Reviews
Even the best retirement plans need updates. Schedule at least one review per year with your advisor to evaluate your investments, income, and goals. Markets, laws, and personal circumstances change—your plan should evolve with them.

 

 

Common Pitfalls To Watch For

  • Spending too freely early on
  • Ignoring market timing and risk
  • Overlooking taxes on withdrawals
  • Underestimating healthcare expenses
  • Failing to revisit your plan

 

 

Ready For A Fresh Look At Your Plan?
The early years of retirement are too important to leave to chance. Branning Wealth Management helps Mississippi retirees create income plans designed to last—adjusting for markets, taxes, and life’s surprises. Contact our team today for a second-opinion review and take the next step toward financial confidence.