One in five Americans has less than $5,000 in cash socked away for retirement. Sugar Land Financial Advisor Derrick Kinney says this is dangerous. "“When unexpected expenses come up during retirement, it can spell disaster.” Doug Pike of "50 Plus" says this happened to a friend of his. "He had a major slab crack at his house – as we all will have eventually if we live in Houston -- that was certainly a huge expense he had not planned for in his retirement.”
As you plan for retirement Kinney says to sock away a few thousand for those unexpected things that can ruin your golden years. “One of my clients jokingly said ‘the biggest expenses in retirement are teeth and taxes’ and that brings to my mind that many retired people may have unexpected health issues!”
Add to that major house repairs that could pop up or even a parent's funeral to fund. Kinney advises his clients to investigate their property, life habits and current health condition to estimate what could happen and how to prepare for it.