Manzanillo Sun article

How You Can Avoid Common Mistakes in Retirement Planning

2013 Finances March 2013 Yann Kostic

By Yann Kostic from the March 2013 Edition

To make a comfortable retirement possible in Mexico (or anywhere for that matter), proper financial planning is crucial. You need to know your sources of income, the amount you can expect to receive from each source and whether those sources are likely to last throughout your retirement years.

Mistakes can prove disastrous to your financial future. So try to avoid the common ones noted below:

•Putting other financial goals first. You probably have several financial goals. You may, for example, be saving for a down payment on a second home south of the border. Don’t let other goals supersede your goal of a financially secure retirement.

•Underestimating your life expectancy. As life expectancy increases, you may need to plan and invest for a longer retirement.

•Incorrectly calculating retirement expenses. You may believe you’ll need a certain percentage of your pre-retirement income in your retirement. But should you plan based on a general percentage? It’s easy to underestimate, even if the cost of living is sensibly lower in Mexico.

•Ignoring inflation. Investors who are uncomfortable with market volatility and therefore decide to invest only in Treasury bills, insured fixed-rate CDs and savings accounts must accept the fact that inflation could potentially eat away at their investment return. That’s because inflation could be higher than the returns offered by these investment vehicles.

•Not taking full advantage of all available tax-deferred investing options. If you’re no longer contributing to a 401(k) plan, consider investing in another option such as an IRA if you still have active income.

Your financial advisor can help you compare options to get the most from your retirement.

Yann Kostic is a Money Manager and Financial Advisor (RIA) with Atlantis Wealth Management specializing in retirees (or soon to be), self-reliant women and Expats in Mexico. Yann works with TD Ameritrade Institutional as the custodian of client’s assets. He splits his time between Central Florida and the Central Pacific Coast of Mexico.

Comments, questions or to request his Newsletter “News You Can Use” Contact him at, in Mexico: (314) 333-1295 or in the US: (321) 574-1529.

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