Whether your retirement is decades away or right around the corner, it’s important to be prepared for all this transition will entail. A good retirement plan should have a solid strategy and leave room for flexibility. It should also be regularly reviewed in order to address potential snags.
Want to make sure you’re in a good place? Start by watching out for these common planning pitfalls.
Not Diversifying Your Portfolio
Maybe a passion for real estate, an interest in bitcoin, or another financial hobby has led to the creation of a very focused portfolio. No matter what, make sure you’re maintaining diversity by minding your proportions. Rebalance your portfolio regularly so you can offset losses with gains and keep a good mix.
Dipping Into Funds Before Retirement
Early withdrawals from a retirement account will not only net you penalty fees, but will also encourage the bad habit of treating your nest egg as an accessible resource. You’ll probably be better off covering unexpected expenses with a designated emergency fund that exists separately from your retirement savings.
Trying to Do It Alone
Whether you’re approaching retirement on your own or with a spouse, adopting and sticking to the right investment philosophy for your circumstances can be a challenge. Having a third-party, objective financial perspective can bring clarity to the situation, so don’t be shy about communicating clearly and asking for help where needed.
Need some assistance? Please reach out with any questions you have.