Here's the main thing people get wrong about retirement.
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00:00You know, a lot of people think that retirement is simply you need money in order to pay your
00:07bills. That's not what's happening here. When you retire, working gives you validation of who you
00:14are. So I think people make a big mistake in that they retire and they just figure out their
00:19retirement in terms of we have this much money and this is the income we're going to get.
00:23But they don't understand that retirement is a whole lot more than that. And then they start to
00:28feel bad about what they're doing. They also don't understand in terms of that you actually
00:35spend more money in retirement than you did when you were working. Because when you're retired,
00:40you eat out more, you go to see your kids more, you want to take more vacations. So I don't think
00:46they quite estimate everything the way that they should. And they don't really prepare for illness
00:51either. If you take Social Security at 62 or before your full retirement age, in my
00:58opinion, you are making the biggest mistake out there. Because you're not compounding it.
01:05You're not letting it grow. You need to just let it be. And for those of you who can,
01:10you should wait till you are 70. Now those ages may change. But if you're currently about to retire
01:16or thinking about it, full retirement age minimum, or at least 70 if you can.
01:24If you have a 401k, great. Especially if your employer matches. But if you don't have a Roth 401k
01:31and you are contributing simply to a traditional 401k, which is pre-tax, you are making the biggest
01:38mistake ever. You need to go Roth all the way. And besides a Roth 401k or 403b or TSB, you can also
01:48have a Roth IRA if you qualify for it income wise. So the biggest mistake you will be making
01:55is getting a tax write-off now for your contributions to your retirement account
01:59and seriously pay for it later on. Big, big mistake.