Moneywise

Sat, Jun 7, 2025, 3:18 PM6 min read

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You probably know the importance of retiring with a hefty, well-diversified portfolio of assets. But what if some of your assets are actually hidden liabilities?

Here are the top seven tempting but deceptive money drains that you could trap yourself in before retirement.

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If you’re financially secure, splurging on your “dream car” can be the ultimate temptation. But the average new car loses roughly 30% of its value within the first two years alone, according to Kelley Blue Book. New cars also often have higher insurance premiums compared to used cars.

The depreciation rate slows down after those initial years, which means buying a modestly used car at an affordable price is a better way to secure your financial future. Plus, you can benefit from a lower insurance bill.

According to a MarketWatch study, full-coverage insurance on new cars averages $168 per month, while used car owners typically pay $150 monthly. That means new car owners pay an extra $216 a year.

You can lower your insurance premiums further by shopping around and comparing rates from leading providers through OfficialCarInsurance.

Simply answer some basic questions about yourself, your driving history and the type of vehicle you drive then OfficialCarInsurance will show you rates from reputable insurance providers like GEICO, Allstate and Progressive.

The best part? The process is completely free and won’t affect your credit score. Get started and find rates as low as $29 per month.

Buying a timeshare in Cabo Verde and spending your retirement on a beach is undoubtedly attractive, but there are caveats. Timeshare ownership involves steep initial costs, recurring maintenance fees, low resale potential and rigid usage schedules.

On top of that, the secondary market is notoriously poor, and many owners struggle to exit their agreements.

Instead of locking yourself into a timeshare, consider creating an annual travel fund for vacation rentals in your retirement plan.