retirement

5 unforeseen expenses that ruin retirement

Taking up an expensive hobby
Next
2 of 6
Back
Taking up an expensive hobby

Say your retirement dream includes racing yachts, collecting antique dolls or starting a goat farm to make artisan cheese. Even if your only real passion is playing golf, your retirement plan should include a way to pay for it.

Harriet Veenker, a Certified Financial Planner in Aitkin, Minn., says it's especially easy for spending on hobbies and recreation to get out of hand during the early retirement years.

"Most new retirees tend to overspend in their first year or two because there is so much out there to do," Veenker says. "Some of the pension plans aren't helpful, because they'll let you take more out in the first five years -- because that's when you're really busy."

Veenker's neighbor, a teacher in the Elk River, Minn., teachers' pension program, elected to take bigger payouts at the onset of retirement. "It is a decision that she has regretted, since the income was cut back after five years," says Veenker.

Make sure you have a spending plan that will fit your lifestyle and allow your retirement income to last for the long haul.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
MORTGAGE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed, 0 point 4.26%  0.02 4.24%
15 year fixed, 0 point 3.27%  0.04 3.31%
5/1 ARM 3.45%  0.21 3.66%
 
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.39%  0.08 4.47%
50K FICO-based HELOC 4.11%  0.06 4.17%
100K FICO-based HELOC 3.96%  0.03 3.93%
 
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.73%  0.02 2.71%
48 month used car loan 2.97%  0.05 2.92%
60 month new car loan 3.22%  0.05 3.17%
 
View Rates in your area Next
Product Rate Change Last week
1 Year CD 0.91% --0.00 0.91%
2 Year CD 1.08%  0.01 1.09%
5 Year CD 1.74% --0.00 1.74%
 
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.67% --0.00 15.67%
Cash Back Cards 16.36%  0.01 16.35%
Low Interest Cards 10.87% --0.00 10.87%
 
Next
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jennie Phipps

Working less for longer

Mexican billionaires Carlos Slim advocates shorter work weeks and longer work lives.  ... Read more

advertisement
Partner Center
advertisement

Connect with us