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Retirement Checklist: 8 Retirement Mistakes To Avoid

couple in retirement with grandchild

Retirement Checklist: 8 Retirement Mistakes To Avoid

Pursuing your retirement dreams is challenging enough without making some common, and very avoidable, mistakes. Here are is a retirement checklist of eight big mistakes to steer clear of, if possible. 


1. 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—and if you’ve even arrived. Creating a strategy may increase your potential for success, both before and after retirement.


A good strategy for retirement

2. Frequent Trading

Chasing “hot” investments often leads to despair. Create an asset allocation strategy that is properly diversified to reflect your objectives, risk tolerance, and time horizon; then make adjustments based on changes in your personal situation, not due to market ups and downs. For more information on "hot" investing, check out our blog on alternative investments.


3. Not Maximizing 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. This is an item of your retirement checklist that you don't want to postpone. Every pay period is potential money you're missing out on!

Are you working on your taxes now? Check out our Quick Reference Guide that discusses 2024 tax brackets and deadlines


4. 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 for your retirement.


5. Overlooking Healthcare Costs

Extended care may be an expense that can undermine your financial strategy for retirement if you don’t prepare for it.


6. Not Adjusting Your Investment Approach Well Before Retirement

Your retirement checklist needs to have several opportunities to adjust your investment approach as you move through stages of life. 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.


Contact Copper State Wealth Management



how to be prepared for retirement

7. 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.


8. It's Not Only About Money

Above all, a rewarding retirement requires good health, so maintain a healthy diet, exercise regularly, stay socially involved, and remain intellectually active.


The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2021 FMG Suite.

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