12 Retirement Planning Mistakes You Must Avoid

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You may believe your retirement plan is on track with 401(k)s and IRAs but that is not necessarily true. Experts estimate that more than 90% of retirement plan participants will retire in poverty or run out of money before death. Yes, it is a shocking statistic… but likely true.

According the Retirement Confidence Survey from Employee Benefits Research Institute 60% of workers have never even calculated how much money they need for retirement so they have no goal to aim for. Let’s face it: you can’t get where you want to go if you don’t even know where the destination is.

It’s not enough to just calculate your retirement savings number, fund your 401(k), and put it all on a shelf to sit and gather dust. If you want to retire with financial security (who doesn’t?) then you must actively work toward your retirement while avoiding the 12 most deadly retirement planning mistakes that I cover in this new feature article. Below is a sampling of the mistakes to avoid…

1. Failing to plan
2. Not saving enough
3. Not starting early enough
4. Relying on Social Security or a company pension plan
5. Not maximizing tax deferral
6. Spend instead of rollover when switching jobs
7. Underestimating health care costs
8. Spending too much after retirement
9. Planning on working forever – or not at all
10. Investing too aggressively – or too cautiously
11. Investing in variable annuities
12. Paying too high investment expenses

In this new article I explain each mistake and what you must do to protect your retirement from its deadly effect.

The sad truth is the statistics clearly show most people are ill prepared for retirement planning responsibilities. They lack the financial literacy necessary causing them to perform poorly as actuaries, asset allocators, investment strategists, and long-term planners. You have a chance to do better because you read this newsletter.

Learn from this new feature article what mistakes to avoid so that you can enjoy a secure retirement…

Further Reading…

• The Dirty Dozen Retirement Planning Mistakes To Avoid – There is more to retirement planning than just funding your 401(k) and IRA. Learn the mistakes you must avoid so that you don’t spend your retirement flipping burgers.
• Retirement Planning Checklist – One of my most popular retirement planning articles providing a step-by-step guide with a list of appropriate actions for each stage of life – whether you are 20 or 80 years old.
• 27 Retirement Savings Catch-Up Strategies For Late Starters – If your retirement looms large but your nest egg doesn’t than this handy guide can help you.
• 5 Essential Pre-Retirement Planning Questions – Discover the what, where, when and how much of retirement planning so that you can enjoy fulfillment as well as financial security.