Suze Orman issues stark warning on major retirement mistake

This retirement mistake could silently drain your savings.

Transcript

00:00The one thing you could do is to make sure that when you do retire, if you own a home,

00:05your home is owned outright. You don't have any debt whatsoever. You have absolutely downsized

00:12so that your expenses are as least as they could possibly be. Because the less that your outgo has

00:18to be, the less money you need to generate income to pay that outgo. So the one thing you can do

00:24every single day is get rid of your debt, increase your savings, make sure you're putting it all in

00:31a Roth retirement account, do not do a traditional retirement account, and just keep on saving,

00:38saving, saving. But you really have to be projecting what inflation will do with your money,

00:44how you're going to spend it. And you have to really get a grip on that money is for you.

00:50In retirement, unless you have a serious amount of money, it's not about giving it to the kids or

00:57the grandkids. It's about making sure you are absolutely okay. And also, you have plans for

01:05long-term care. And as you get older, who's going to take care of you? Who's going to pay the bills?

01:12How's it going to work? And you all have to have a living revocable trust, a will, an advanced

01:19directive and a durable power of attorney for health care.