Don’t Scramble Your Nest Egg—Avoid These ‘Retirement Budget Busters’

By Michele Harris
October 7, 2021
a couple looking at paperwork

As you get closer to retirement, keeping your nest egg intact should be your financial priority. Eric Jaffe, chief executive officer and co-founder of MOSAIC Wealth Partners in Rockville, Md., shared some advice on how to keep common “retirement budget busters” from scrambling your nest egg. 

Budget for the unexpected

“Two of the biggest killers of an otherwise well-thought-out retirement plan are poor investment performance at the beginning and the high inflation that will occur throughout,” says Jaffe. “Unanticipated and unplanned-for expenses, such as helping family members with financial needs and costly home repairs, also can derail a good plan.”

Jaffe says that adding some cushion to your nest egg helps manage surprises when they arise. “If you’ve built a cushion into your nest egg for these types of costs, you’ll be able to handle them in stride. If not, however, you may have to make tough decisions about whether your investment performance and spending will allow you to help that family member when he or she calls.”

Be prepared for expensive home repairs

A built-in cushion can also help you manage sudden and urgent home repairs. A new roof might cost $12,000. Fixing a foundation could exceed $10,000. Too often, people are forced to dip into their retirement funds or take out a loan to pay for big-ticket repairs. Moving to a senior living community frees you from the hassle and financial burden of expensive home maintenance and repair costs, allowing you to keep your nest egg unscathed. 

Monitor your investments closely and be prepared to make modifications. “Having a well-diversified investment portfolio that accounts for your financial needs today and throughout retirement without taking an excessive risk can go a long way toward minimizing harm due to significant market downturns,” Jaffe says, “and provide some growth so you can maintain your standard of living during periods of higher inflation.

“At the same time, being prepared to modify your spending habits during periods with substantial drops to your nest egg’s value and/or rising inflation will help keep your long-range retirement plans on track.”

Minimize financial uncertainty at Erickson Senior Living

Instead of budgeting for costly home repairs and other unforeseen expenses, give yourself financial peace of mind by taking up residence at your preferred Erickson Senior Living community. Our maintenance-free campuses require no upkeep or additional expense. Take the first step on the journey to maintenance-free living by requesting an Erickson Senior Living brochure today!