What are the different risks and mistakes the older people prone to?

The mistakes for which the old people have to pay:

1) Did not plan for future while you were young:

A mistake the older people makes at the young age is that they don't plan for future. In the older age when you look for financial security, you have to pay for the consequences of being reluctant in days of youth. You did not understand the responsibility you had to take in order to pave a way for a more brighter and secured future. As you never thought about your life after retirement, meeting the daily expenses now would leave you with no cash in hand. If a long term financial strategy is not planned then you might face disappointment now.

2) One of the mistake is to Listen to the expert's Advice:

The elder people who opted for expert financial advice for the retirement account has come across very unfortunate scenario due to loss in the value from 40% to 50 %. Many financial advisors do not give much priority to the needs and requirement of the clients. These financial advisors just act as sales person who are bothered with their target, to sell the mutual fund. They do not care to think about the benefits the client would reap after retirement and so they don't offer a good deal to work on.

3) Seize the opportunity:

The older people cannot look for proper opportunity, as they lack the guidance of a proper financial coach. If in your youth. had invested in a good fund then you would not have suffered after retirement. At present you would have enjoyed your retired life in some island with your wife. During the time of economic downturn avail the real opportunity as the price of houses fall and the shares of excellent companies become affordable. After the market pulls up the share prices also increases. If you bought stocks at young age you could have enjoyed the luxury today.

4) Your Job- the only source of income:

At the time of youth, people hardly think that one day they would turn old and this job won't last forever. You must have had changed your job frequently and that became an obstacle in saving for your future. But now at this old age you have to pay for the consequence of the frivolity of your youth. You never thought of doing a part time job or developing an own business to secure your future.

5) Habit of depending on others and on government:

While you have a secured job, you might think that after retirement you can fall back at the retirement plan and other plans offered by the government. After your retirement, however you might find out that social security plan and Medicare both have been left in deserted conditions. And your last hope would be your pension plan but this can even betray you as the pension plan might go bankrupt. If you would have acted responsibly to build your financial future strong and you would not have faced such horrid situations.

6) Lack of financial education:

The mistake that we commit at young age, shows its consequences at old age. We have not been given any financial education while we were in school. So in the old age we are unprepared to solve the present financial crisis. Financial education would have helped us to take decision independently.

7) Default in payment on a regular basis:

The mistake young people make is that they are very disorganized in time paying their bills on time. You might have forgotten to pay the bill on time but default in the payment can incur more late fees and interest rates. The default in payment can negatively affect your credit score too.

In old age you have to carry the debts of the extravagant and over spending habit of your youth. It would be a great mistake at the young age for which you have to pay through out your life.
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