"Annuity.com is the #1 provider of annuity content on the internet." - Bill Broich

Annuity.com
  • Home
  • Articles
    • Annuities
    • Bonds
    • Estate Planning
    • Investing
    • Retirement Planning
    • Social Security
  • Invited Authors
  • Resource Library
  • Honors
  • Search
  • Menu Menu

Douglas Hermann
Douglas is a Certified Financial Fiduciary, founder, and owner of Stone Eagle Financial. He serves as the President and founding member of a small business consortium that serves the River North Art District (RiNo) of Denver. Douglas built his practice on the belief that all people deserve financial well-being and freedom in retirement. Website: doughermann.retirevillage.com

Office: (720) 415-7546 | Stone Eagle Financial

Avoid These 5 Common Retirement Mistakes 

August 4, 2022/in Retirement Planning/by Douglas Hermann

According to a recent Employee Benefit Research Institute study, only 58% of workers have saved for retirement, and only 27% have saved enough to cover all expenses. Many people will have to rely on Social Security which may not be enough to cover basic costs. Building a retirement fund that provides guarantees and helps offset inflation means remaining focused on various factors, including:

  • Risk Tolerance will change as you get closer to your retirement date
  • Inflation concerns
  • Time Horizons for needing the funds
  • Your ability to save for retirement

Planning for retirement can be overwhelming, and it’s easy to make mistakes. This article will discuss five common retirement planning mistakes and how to avoid them.

  1. Not contributing to a retirement account early enough

Not contributing to a retirement account early enough is a common and one of the biggest mistakes. The sooner you start saving, the more time your money has to grow and compound. Contributing even small amounts each month can have a beneficial result. It’s better to start sooner than later.

  1. Not contributing enough

Another mistake people make is not contributing enough to their retirement accounts. Experts recommend saving at least 10-15% of your income for retirement, but many people fall short of this. If 10-15% is out of reach, start with what you can and increase your contributions as your income grows.

  1. Not diversifying your investments

Retirement accounts like 401(k)s and IRAs offer various investment options. Understanding your Time Horizon (when the funds will be needed) can help determine your risk tolerance.

  1. Withdrawing money from your retirement account early

If you need to tap into your retirement savings before you reach age 59½, you may be exposed to a 10% penalty plus income taxes on the withdrawal. If you need to withdraw money early, seek advice from a licensed and authorized financial professional.

  1. Not having a plan can mean failure

The last mistake is not having a plan for your retirement. Retirement may seem distant, but it will be here before you know it. Avoid making the mistake of not having a plan for how you’ll save and invest your retirement money.

These are just a few mistakes people make when planning for retirement. The best way to avoid these and others is by planning early and creating a solid plan. Doing this will increase your chances of having a comfortable retirement.

 

Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn

Get Your Free Safe Money Guide


Our 20th edition, the standard of the industry.

Free Immediate Download
View Best Annuity Rates

Recent Posts

  • 5 Mistakes Investors Make When They Fail to Keep Their Cognitive Biases in Check
  • Avoid These 5 Common Retirement Mistakes 
  • In These Trying Times, Don’t Lose Your Grip On Your Finances
  • Are You Struggling To Build Up Your Nest Egg? Ask Your Tax Expert About The Retirement Savings Contribution Credit.
  • Economic Woes Push More Americans Into Predatory “Quick Cash” Loans

Categories

  • Annuities
  • Bonds
  • Estate Planning
  • Investing
  • Retirement Planning
  • Social Security

Archives

Free Safe Money Book

Free Safe Money Guide

Free Social Security Claiming Guide

© 2022 Annuity.com | A National Organization Focused on Truth, Transparency, and Trust.

For Licensed Agents | Find An Agent | About | Contact | Glossary | Code of Ethics | Terms of Use |  Privacy Policy | Website Accessibility

Web Design by BPA

Scroll to top