Retirement Planning: Ten Common Mistakes Baby Boomers Make When Planning For Retirement

Simply investing in a retirement plan does not guarantee that you will be financially secure when you retire. A mistake in your retirement planning could cause a baby boomer a lot of trouble and set his retirement years back. To make sure you’re in the perfect position to retire when you want, and on your terms, diligent planning is just as essential as avoiding the most common pre-retirement planning mistakes baby boomers make. If you make these common retirement planning mistakes, you could be in trouble.

1. Don’t Forget To Make The Most Of Your Company’s Retirement Benefitsand invest as much as you can in your company’s retirement plan.
2. Do not withdraw money from your retirement plan or you will lose valuable interest that is almost impossible to replace. Some retirement plans allow hardship loans and withdrawals, but be aware of the loss of interest, penalties, and early withdrawal fees that may be involved.
3. Don’t forget to actively monitor all your investmentsto stay on top of discrepancies and how well your investments are performing.
4. Don’t rely solely on Social Security to provide all of your retirement income. Back it up with other sources of income such as a company pension plan and personal savings.
5. Don’t trust your partner’s retirement plan. The retirement plan partner may die or get divorced or have an extended illness that would end up compromising the single spouse’s retirement plans. Make sure each person has a separate retirement plan.
6. Don’t forget to review your retirement plan periodically. Review asset allocation, balances, targets, etc. to get the most out of your retirement plan.
7. Don’t put all your investments in one stock. Diversify investments so one failure doesn’t wipe out your entire retirement fund.
8. Check your broker and financial adviser carefully before entrusting them with your retirement savings. Investigate credentials and trace logs.
9. Don’t Forget to Get Serious about Retirement Planning. Your retirement plan should be a priority even when you are young and at the beginning of your career. Starting early saves you a large investment and could even allow you to retire early. Think about the lifestyle you want after retirement, and don’t put off planning until you’ve paid off all your current commitments.
10. Don’t forget to figure out the numbers. There is no set formula for determining how much money you will need. The amount depends on the lifestyle you want, your current ability to save, and your investments. Approximately, to generate an income of $50,000 per year during your retirement, it is necessary to accumulate $1 million in the fund.