According to an interview for PBS television’s Frontline, over 900 people in any given 1,000 person retirement plan will retire in poverty or run out of money before death. The average 65-year-old retiree can expect to have two more decades ahead in retirement. Daily Finance show you 5 retirement planning mistakes and how to fix them.
- Mistake: Focusing solely on your rate of return. Solution: Create a diversified portfolio.
- Mistake: Forgetting about taxes. Solution: Have a tax plan for investments and assets.
- Mistake: Thinking the start of retirement marks the end of planning. Solution: Review finances and goals every year.
- Mistake: Saving too little. Solution: Start now and automatically increase contributions with every raise and bonus.
- Mistake: Saving too late. Solution: Stay in the workforce or look for guaranteed income streams.
Retirement planning is one of the most important financial goals you’ll undertake. Don’t make the mistake of not taking retirement planning seriously enough. (dailyfinance.com)