The following content originally appeared in an article by Geoff Williams in US News & World Report on September 30, 2016.
5 Big-League Mistakes of the Newly Retired
For about two years now, a class-action lawsuit has been ongoing in court, with minor league baseball players trying to get back pay based on federal and state minimum wage and overtime laws. That's because most minor league baseball players earn well below the federal poverty line.
That might be helpful to remember if you're retiring soon, and you think of yourself as a major league baseball player. The last thing you want is to be sent back to the minors.
But you could find yourself feeling as if you went from the good life to the poor life as quickly as a fastball, if you aren't careful. To stay far away from that poverty line, take the advice from those who see these errors being made all the time among the newly retired.
Not talking to your spouse about how you each imagine life in retirement. Have you two talked about how you're going to manage your money? Or what you'll both be doing with your free time?
Too many retired couples don't talk about these things, according to Lauren Klein, owner of Klein Financial Advisors, Inc. in Newport Beach, California.
"I have one client who told me that after her husband retired, she realized that whenever she came home and saw his car in the driveway, she would cringe. That's not a happy retirement for anyone," she says.
Klein adds that the solution to this sort of problem is what you would expect: Communicate with your spouse.
"If your expectations aren't aligned, and they rarely are, work together to find common ground," Klein says. And if you can't, she suggests getting help from a professional.
Talking to a professional, like a financial advisor, could also keep you from making one of the biggest blunders of all (next)...