Missed Fortune Super Blog

A Savings Vehicle That Makes All the Difference

Missed Fortune – These 10 Mistakes that are Jeopardizing Your Retirement

Posted on | August 2, 2010

missed fortune super blog itunes 150x150 Missed Fortune   These 10 Mistakes that are Jeopardizing Your Retirement

Is a Long Life Going to Ruin Your Retirement Dreams?

So you envision vacations, no debt, and lots of cash to give to your children, grandchildren, and charities when you retire.

But will this be your reality? Not unless you beat the statistics by using Missed Fortune strategies.

A growing percentage of Americans are outliving the money they have set aside for retirement there hopes of abundance are replaced struggles of survival.

They literally cannot afford a long life. Instead, they become financially depend on others.

It seems absurd that after working an average of 40 years in the richest nation in the world that only a very small percentage of people can afford a long retirement, but that is the reality.

It’s because 95 percent of people are investing the same way and making the same mistakes.

The IRA and the 401(k) are the most popular retirement strategies in the U.S. With these strategies people are hoping to grow their investments and postpone taxes until they fall into a lower tax bracket because they are earning less.

This concept is riddled with problems. Most notable is that hopes of being in a lower tax bracket will not be realized because even though there is less income, there are often less deductions as well.

That, mixed with the fact that congress is continually raising taxes, means if anything people should expect higher taxes.

Other people follow the financial advice that paying off all debt will create financial independence.

These strategies implore people to send extra principle payments into their mortgage companies to alleviate themselves of any debt.

This strategy has caused many people to ultimately lose their homes because they lacked liquidity so when the economy dropped they couldn’t even afford to make the scheduled payments.

Avoid These Mistakes to Beat the Odds

In order to protect against the common mistakes people are making in retirement planner, it is first necessary to know what these mistakes are.

There are ten mistakes I detail in my e-book, Baby Boomer Blunders, which are as follows:

  1. Short-term investments being used for long-term goals.
  2. Thinking that you will only live, therefore need to budget, for 15-20 years of retirement.
  3. Believing that paying off your home will give you peace of mind.
  4. Believing that $100,000 to $400,000 will be enough of a nest egg to fund your retirement.
  5. Thinking that you will be in a lower tax bracket when you retire.
  6. Believing that deferring taxes on retirement funds saves you on your taxes.
  7. Thinking IRAs and 401(k)s are the best way to fund your retirement.
  8. Reaching retirement age and not drawing out retirement funds from IRAs and 401(k)s because you don’t need the money, instead of doing a strategic rollout.
  9. Viewing retirement as a time when you can do all of the things you always wanted to.
  10. Thinking retirement is the time to coast instead of keeping a purpose.

Related Articles:

*Life insurance policies are not investments and, accordingly, should not be purchased as an investment

Be Sociable, Share!
  • more Missed Fortune   These 10 Mistakes that are Jeopardizing Your Retirement

Comments

Leave a Reply






Warning: Unknown: open(/home/content/36/3927036/tmp/sess_annnp2qa8tr2ikopopoh5do620, O_RDWR) failed: No such file or directory (2) in Unknown on line 0

Warning: Unknown: Failed to write session data (files). Please verify that the current setting of session.save_path is correct () in Unknown on line 0