Habit #3: Believing Traditional Retirement Accounts Are Enough
Ah, the classic: “I’ve got my 401(k), my IRA, and Social Security. I’m golden.” Sounds comforting, right? But here’s the cold reality: relying solely on traditional retirement accounts in today’s economy is risky.
Why? Inflation, longer lifespans, and rising healthcare costs mean that what seemed “enough” 30 years ago might barely cover essentials today. Boomers assuming that the old rules still apply are often the ones scrambling in their 60s and 70s.
Example: Tom invested consistently in his 401(k) but never diversified. Social Security covers basics, but when a medical emergency hits or inflation spikes, he’s left scrambling.
Actionable Fix: Diversify. Emergency funds, long-term care planning, side-income opportunities, or low-risk investments — these are the tools to modern-proof your finances. Don’t just “hope for the best” with a 401(k).
