Eight Mistakes That Can Upend Your Retirement

Pursuing your retirement dreams can be very challenging. To give yourself the best possible chance of reaching your retirement goals, steer clear of the following eight big blunders whenever possible.

Having 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—or whether you’ve arrived. Creating a strategy will likely 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 is properly diversified to reflect your objective, risk tolerance, and time horizon; then make adjustments based on changes in your personal situation, not due to ups and downs in the market.
Failing to maximize 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.
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 do so for your retirement.
Overlooking health care costs. Extended care expenses can undermine your financial strategy for retirement if you don’t prepare for it.
Failing to adjust 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.
Retiring with too much debt. If too much debt is bad when you’re making money, it can be deadly when you’re living in retirement. Consider managing or reducing your debt level before you retire.
Neglecting your overall well-being. It’s not all about money. Above all, a rewarding retirement requires good health, so be sure to maintain a healthy diet, exercise regularly, stay socially involved, and remain intellectually active.

Actis Wealth Management
www.actiswealth.com