Hijacked by Health-Care Costs?

We asked two certified financial planners about the smart moves, mistakes, and surprises they see among clients

Julie Schatz, CFP, Menlo Park, Calif.

SMARTEST MOVE

Cutting spending so they take less out of a retirement portfolio, especially when it's down like now.

BIGGEST MISTAKE

First, entering retirement with a third or more of assets tied up in one company's stock. Second, applying for Social Security at age 62 without running the numbers first.

SURPRISE

Forget needing only 70% of preretirement income. Many retirees take up hobbies, and hobbies are expensive. The biggest surprise: Health-care costs, especially if retiring before age 65.

Percy E. Bolton, CFP, Pasadena, Calif.

SMARTEST MOVE

To do some sort of retirement plan as the age for retiring nears. It gives a good idea whether they have the income and assets to live the lifestyle they expect. Most don't know.

BIGGEST MISTAKE

They leave work prematurely and find out later they didn't save enough, largely due to high and rising medical costs. They didn't realize how much time they'd spend at the doctor's.

SURPRISE

Clients think retirement means peace and quiet. But there are so many decisions to make, from helping the kids to figuring out what to do with the house.

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