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Money changing hands.

You’ve worked hard to save for retirement. So it’s important to be aware of certain life events or habits that could cause you to go broke, despite careful planning during your working years. Here are four common things that are detrimental to finances in retirement and advice from professionals on how to avoid them.

The problem: Your house is too expensive. 

Whether they need extra income, want to pursue a passion, or simply want to stay engaged in their professional field, an increasing number of people are continuing to work in some capacity after they retire from full-time careers. Fortunately, there are many part-time jobs for older adults who want to do work they enjoy and still have time to travel and spend time with family.

Elder financial abuse.

You probably know to look out for things like identity theft and scams like con artists soliciting money over email. But, there’s another threat you need to be aware of. It’s called elder financial abuse—and it’s often perpetrated by people you trust, such as caregivers, friends, or even family members. 

mobile banking

If you have grandchildren, you undoubtedly have many important lessons about money to impart to them—the importance of saving it, how much it really costs to retire, and what it’s been like living through different types of economic ups and downs, just to name a few. 

Individual Retirement Accounts

There are 639,000 U.S. taxpayers with IRAs worth over $40 billion who may not have taken required minimum distributions (RMDs) in 2012, according to a 2014 audit by the Treasury Inspector General for Tax Administration. Penalties are stiff for missing RMDs—potentially 50% of the missed distribution. 

Putting in insulation in a house.

If you’re planning to sell your house to downsize in retirement, you’ll probably want to make some updates before putting in on the market—particularly, if you’ve lived there for many years. But, the question on many homeowners’ minds is this: Which renovations will yield the most resale value?

credit card

While retirement is certainly no time to rack up credit card debt, using the right cards responsibly can be a great way to get travel rewards, cash back, and other perks. If you’re retired, here are six of the best credit cards to keep in your wallet. 

IRS conducting a tax audit

When you drop your tax return in the mail (or hit submit on an e-file site), the last thing you want to think about is being the subject of an IRS audit. But, a certain percentage of taxpayers are audited each year, so it’s important to be prepared and know which red flags might draw negative attention to your return.

last will and testament document

Wherever money and family are involved, conflict tends to quickly follow. You may feel anxious about your estate planning because you don’t want to cause squabbles among your heirs. But, with some careful planning—and lots of discussion—you can make sure inheritances you leave are received in the spirit in which they were intended.