Ten Mistakes That Could Jeopardize Your Retirement 

It’s difficult enough to pursue your retirement goals without making specific, frequent, and easily avoidable errors. Here are nine significant mistakes to avoid, if at all possible. 1. No Strategy Having no strategy is the worst mistake you can make regarding retirement. Without a plan, you might not have any goals, making it impossible to know how you would get there. Creating a plan improves your chances of success, both now and in the future. A recent survey from the US Federal Reserve found that over 25% of Americans had no pension or retirement savings. Since saving for retirement is a lifelong effort, it is easy to lose sight of it when retirement is decades away. So it’s best to have a strategy to ensure consistent retirement savings. 2. Frequent Trading Chasing “hot” assets frequently results in hopelessness. Create an appropriately diversified asset allocation plan that reflects your goals, level of risk tolerance, and time horizon. Then, make modifications based on changes in your specific circumstances, not on market fluctuations. 3. Not Maximizing Tax-Deferred Savings Employees can save for retirement in a tax-efficient manner. It might not be a great idea to forego your employer’s 401(k), especially if you’re missing out on free money in employer-matching contributions. It’s crucial to make plans for these tax payments so they don’t come as a surprise, even if you think your marginal tax rate would be lower in retirement than it is today. 4. Ignoring Healthcare Costs Healthcare costs can jeopardize your financial retirement plan if you don’t plan for long-term care in retirement. Around 70% of persons 65 and older will require some kind of long-term care in their lifetimes. 5. Failing To Modify Your Investment Strategy Well Before Retirement When you’re about to retire, the last thing your retirement savings can afford is a significant decline in stock prices and an extended bear market. Before using your money, think about changing your asset allocation to avoid selling assets at a time when they are undervalued. 6. Retiring Early Even though you might have fantasies about retiring early, you might not want to be in a rush for several reasons. First, you need more money if you retire earlier than anticipated. The last thing you want is to depend too much on your nest egg and run out of money. Then, rather than engaging in activities you like, you’ll be compelled to work to make money in retirement. Also, early retirees forfeit their active income, the primary source of cash for their retirement savings. Depending on the level you are in your career, you could be foregoing the possibility of significant financial gain. 7. Retiring With Too Much Debt If having too much debt when you’re working is bad, having it in retirement might be fatal. Before retiring, think about controlling or lowering your debt load. 8. It’s Not Just About Money Maintaining excellent health is essential for a fulfilling retirement, so exercise frequently, eat healthfully, stay socially active, and keep your mind engaged. 9. Being Too Cautious (Or Too Aggressive) According to the standard rule of thumb, you’ll need to replace around 80% of your pre-retirement income to maintain the same standard of living as before retirement. Calculating your contribution amount to be as close as feasible to reaching your long-term goals is an essential component of retirement planning. You cannot have enough if you are overly cautious. Similarly, an overly pushy approach can compromise your financial status and leave you with insufficient funds. This could make you more inclined to withdraw money from your retirement savings early and pay a 10% penalty. Conclusion  Retirement is more complicated than simply reaching a specific age and being able to leave your job behind. It requires a strategy, the courage to carry it out, and the discipline to stay with it for several years. Understanding the steps you must take and the pitfalls you must avoid is a terrific place to start, even though a lot depends on your daily decisions. Start saving today if you’re still young. Determine what you can do to put yourself in a better position to achieve your objectives if you feel you are falling behind. Contact Information:Email: mackhales@bellsouth.netPhone: 7705402211Bio: Mack Hales has spent the past 4 decades helping clients prepare for retirement and manage their finances successfully. He also works with strategies that help clients put away much more money for their retirement than they could in an IRA or even a 401k. We involve the client’s CPA and/or their tax attorney to be sure the programs meet the proper tax codes.Mack works with Federal Employees to help them establish the right path before and after retirement. The goal is to help the client retire worry-free with as much tax-free income as possible and no worries about money at risk of market loss during retirement.•Mack has resided in Gainesville, GA since 1983, so this is considered home. Mack is married to his wife of 51 years, has two boys and five grandchildren.