Retirement Mishaps: Are You Making These Retirement Blunders

Retirement Mishaps: Are You Making These Retirement Blunders

February 12, 2024

Explore the latest IRS updates for 2024. Uncover key changes, navigate new regulations, and stay ahead in the ever-evolving tax landscape. Whether you're a seasoned taxpayer or just getting started

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

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.

Not Maximizing Tax-Deferred Savings

Workers have tax-advantaged ways to save for retirement. Not participating in your employer’s retirement plan may be a mistake, especially when you’re passing up free money in the form of employer-matching contributions.1

Overlooking Healthcare Costs

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

Not Adjusting 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.2

Retiring with Too Much Debt

If too much debt is bad when you’re making money, it can be worse when you’re living in retirement. Consider managing or reducing your debt level before you retire.

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.

Advisory services are offered through Meyers Financial Services, Inc., an Investment Advisor in the State of California.

1. Under the SECURE Act, in most circumstances, you must begin taking required minimum distributions from your 401(k) or other defined contribution plan in the year you turn 73. Withdrawals from your 401(k) or other defined contribution plans are taxed as ordinary income, and if taken before age 59½, may be subject to a 10% federal income tax penalty."
2. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost. Asset allocation is an approach to help manage investment risk. Asset allocation does not guarantee against investment loss. Past performance does not guarantee future results.

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Ariel Andrews, Investment Advisor Representative and Certified Financial Coach at Meyers Financial Services is committed to guiding clients on their financial journey. With expertise in financial coaching and investment advisory, Ariel strives to help individuals achieve their financial goals and make informed decisions for a secure future.

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 2023 FMG Suite.