Retirement Mistakes to Avoid
When you are planning for your retirement, you need to be aware of the fact that there are some easy mistakes to make. Your golden years are getting closer, and your ongoing survival is no small matter. If you are planning on making sure your investments are secure and your future is adequately provided for, then the following are things to avoid at all costs:
All your eggs
Diversifying your investments is something you should seriously consider, if you have placed all of your eggs in one basket so to speak. Having only one bet for your retirement is a dangerous proposition, as it opens you up to greater risk.
How much would you be willing to risk on your retirement? Place importance on what it would be like when you are retired, and you have no new income streams. What would that be like? Entering retirement with a portfolio that's heavy with stocks can be risky. Entering retirement with a portfolio that's too conservative might not generate enough growth to help you balance out distributions. A sensible middle ground approach might be a good way to go.
Paralyzed by choice
Having choices is a good thing, but too much of a good thing can turn out to be bad. When you are unsure of what to do to prepare for retirement and you do some research, you can find an ocean of choice out there.
This can scare people that they might do the wrong thing, but rather than letting fear take control and paralyzing you, the best thing to do is seek professional advice, and then start out on your well-mapped road to retirement. If you never start saving you will never be able to retire comfortably.
The number of Americans who have no cash in the bank to fall back on is staggering. Approximately 26% of adults have no savings set aside for emergencies, while another 36% have yet to start socking away money for retirement.
Borrowing money from your future self
Sometimes folks decide that they should dip into their retirement portfolio. If you can avoid this it is a good idea, as you are essentially borrowing from your future self and placing your retirement at risk over time.
Avoiding these mistakes will help you get closer to your goal of safe comfortable retirement. It could mean that you are looking forward to retirement in eager anticipation instead of worry.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC