Wealthramp, a referral network of fee-only financial advisors, has compiled a list of the biggest retirement mistakes, reproduced here and discussed in the blogs which follow.
9 biggest retirement planning mistakes to avoid
- Failing to consider the costs of long-term care when estimating your living costs during retirement.
- Failing to take full advantage of pre-tax contribution benefits and matching contributions offered by your 401(k) plan.
- Allowing too much of your retirement nest egg to be eaten up by investment fees.
- Not contributing enough to your 401(k) plan and IRA accounts.
- Jeopardizing the long-term growth of your retirement portfolio by investing too much in cash or bonds.
- Assuming that Social Security will provide the majority of your income during retirement.
- Starting Social Security before full retirement age.
- Neglecting how the market is throwing your investment mix out of balance.
- Underestimating how long you will need your retirement nest egg to last.
The old saw, “Failing to plan is planning to fail” may be true.
So is the need to plan with a full knowledge of the facts and not to be tripped by outdated facts or false assumptions.
Almost all of us want to retire someday. None of us want to retire into poverty or to be unable to receive the care we need. Being aware of the changing environment may help us avoid both.
Elder law attorney, Terry Garrett, CELA, is a member of the National Academy of Elder Law Attorneys and is an Approved Guardianship Attorney. She assists people in elder law, estate and special needs planning, guardianship and settling estates. She graduated with honors from Cornell University. She was on the Dean’s List at Wharton Business School. She earned her J.D. at Columbia Law School, receiving the Parker Award and a Mellon Fellowship.
