3 Retirement Mistakes to Avoid Our team has compiled three retirement mistakes to avoid to ensure you have enough saved for retirement.

If you lose sleep at night, wondering if you will have enough money saved to retire, you are not alone.

• More than half (56%) of Americans don’t know how much they’ll need to retire. (Northwestern Mutual)
• 54% of people currently have a retirement strategy, but only 12% wrote it down. (Transamerica Center for Retirement Studies)
• The average life expectancy for a man turning age 65 in 2020 is age 84. The average life expectancy for a woman turning age 65 in 2020 is age 87. (Social Security Administration)
• 42% of people are concerned about outliving their assets. (Schroders)
• More than one in four (28%) retirees have mortgage debt. (Transamerica Center for Retirement Studies)

Our team has compiled three retirement mistakes to avoid to ensure you have enough saved for retirement and, more importantly, have a consistent stream of income during your retirement years to sustain you and your loved ones without affecting your lifestyle.

1. Taking too much risk with investments, “Losses hurt more than gains help”: While more risk means more return over the long term, you must be sure the risk you assume is in line with your overall financial plan. We find that many pre-retirees do not realize their investments are in an aggressive portfolio, nor do they understand the risk associated with that type of investment portfolio. You must review your investment portfolio carefully and regularly.
2. Giving too much money to your children and grandchildren: As parents, we always want what is best for our children. With that said, if you give all of your money to your children, how will that impact your golden years? Our team has seen parents pay off student loans, provide down payments for homes and even co-sign new loans for their adult children. All of these decisions impact your retirement plan. Before making any of these types of decisions, it is best to consult with your financial professional.
3. Not having a written income plan for today and tomorrow: At RPS, we believe that your retirement plan also encompasses your current financial situation. A written plan that you review consistently with your financial professional is a crucial retirement strategy. Knowing how to make today’s money decisions work for your future is a conversation you must regularly have.

Suppose you are concerned about outliving your money. In that case, a team member can conduct a review of your investments, simulate how they will react to historical market conditions, and assess your existing portfolio. Contact us today.