Planning for retirement is about more than numbers on a page – it’s about avoiding pitfalls that can set you back. Our partners at Rize Wealth are sharing eight common mistakes that can derail your retirement goals, along with strategies to help keep you on track.
Pursuing your retirement dreams is challenging enough without making some common, and very avoidable, mistakes. Here are eight big mistakes to steer clear of, if possible.
No strategy
Yes, the biggest mistake is having no strategy at all. Without a strategy, you may have no goals, leaving you no way of knowing how you’ll get there – and if you’ve even arrived. Creating a strategy may increase your potential for success, both before and after retirement.
Frequent trading
Chasing “hot” investments often leads to despair. Create an asset allocation strategy that’s properly diversified to reflect your objectives, risk tolerance, and time horizon; then make adjustments based on changes in your personal situation, not due to market ups and downs.¹
Not maximizing tax-deferred savings
Workers have tax-advantaged ways to save for retirement. Not participating in your employer’s 401(k) may be a mistake, especially when you’re passing up free money in the form of employer-matching contributions.²
Prioritizing college funding over retirement
Your kids’ college education is important, but you may not want to sacrifice your retirement for it. Remember, you can get loans and grants for college, but you can’t for your retirement.
Overlooking healthcare costs
Extended care may be an expense that can undermine your financial strategy for retirement if you don’t prepare for it.
Not adjusting your investment approach well before retirement
The last thing your retirement portfolio can afford is a sharp fall in stock prices and a sustained bear market at the moment you’re ready to stop working. Consider adjusting your asset allocation in advance of tapping your savings so you’re not selling stocks when prices are depressed.³
Retiring with too much debt
The last thing your retirement portfolio can afford is a sharp fall in stock prices and a sustained bear market at the moment you’re ready to stop working. Consider adjusting your asset allocation in advance of tapping your savings so you’re not selling stocks when prices are depressed.³
It’s not only about money
Above all, a rewarding retirement requires good health, so maintain a healthy diet, exercise regularly, stay socially involved, and remain intellectually active.
Ready to fine-tune your retirement strategy?
A Rize Wealth advisor can help you create a plan that brings all the pieces together – from investments to withdrawals and everything in between. Connect with us today to schedule your personalized consultation.
¹The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost. Asset allocation and diversification are approaches to help manage investment risk. Asset allocation and diversification do not guarantee against investment loss. Past performance does not guarantee future results. ²Under the SECURE Act, in most circumstances, you must begin taking required minimum distributions from your 401(k) or other defined contribution plan in the year you turn 73. Withdrawals from your 401(k) or other defined contribution plans are taxed as ordinary income, and if taken before age 59½, may be subject to a 10% federal income tax penalty. ³The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost. Asset allocation is an approach to help manage investment risk. Asset allocation does not guarantee investment loss. Past performance does not guarantee future results. The content is developed from sources believed to provide accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
Los profesionales financieros asociados con LPL Financial pueden discutir y/o realizar transacciones comerciales solo con residentes de los estados en los que están debidamente registrados o autorizados con licencia. No se pueden realizar ni aceptar ofertas de residentes de ningún otro estado. Los valores son ofrecidos a través de LPL Financial (LPL), un corredor de bolsa registrado (miembro de FINRA/SIPC).Los productos de seguros son ofrecidos a través de LPL o sus afiliados autorizados con licencia. El asesoramiento de inversiones es ofrecido a través de Global Retirement Partners (GRP), un asesor de inversiones registrado y una entidad independiente de LPL Financial. Rize Federal Credit Union (Rize CU) y Rize Wealth no están registrados como corredores de bolsa ni asesores de inversión. Los representantes registrados de LPL ofrecen productos y servicios a través de Rize Wealth y también pueden ser empleados de Rize CU. Estos productos y servicios son ofrecidos a través de LPL o sus afiliados, los cuales son entidades separadas y no afiliadas a Rize CU o Rize Wealth. Los valores y seguros ofrecidos a través de LPL o sus afiliados son:
No asegurados por la NCUA o cualquier otra agencia gubernamental
No Credit Union guarantee
No son obligaciones o depósitos de la Credit Union
Pueden perder valor
Rize Federal Credit Union (Rize CU) proporciona referencias a profesionales financieros de LPL Financial LLC (LPL) de conformidad con un acuerdo que permite a LPL pagar a Rize CU por estas referencias. Esto crea un incentivo para que Rize CU haga estas referencias, lo que resulta en un conflicto de intereses. Rize CU no es un cliente actual de LPL para servicios de asesoramiento. Por favor, visita lpl.com.