What are a few of the most common errors people make when thinking about retirement?
- Failure to begin saving as soon as you begin working.
- Not having a plan.
- Not reviewing the plan semi-annually.
- Not evaluating your risk profile and matching your investments to it.
- Using the wrong mortality assumption when determining how much money you will need in retirement – either assuming you will live “forever” or will pass away too early – as this assumption has a huge impact on your plan.
- Forgetting to include Social Security in your plan.
- Forgetting to factor in mortgage or student debts as a retirement cost.
If you can keep these items in mind while developing and managing your retirement plan, you will greatly improve your chances of having a financially secure retirement. Good luck!