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Ten Financial Mistakes To Strive to Avoid In Retirement

Ten Financial Mistakes To Strive to Avoid In Retirement

Ralph Waldo Emerson once said, “It requires a great deal of boldness and a great deal of caution to make a great fortune, and when you have it, it requires ten times as much with to keep it.”  This quote relates to retirement and estate planning very well.  In many cases, it is not about doing everything right, but what you did not do wrong.  Work with an knowledgeable, experienced and trustworthy retirement and estate planning advisor to make sure your planning is set up properly and you are avoiding the following mistakes.

1.  Not making the most of existing capital.

Not only do you want to make sure your money is working as hard for you as you did for your money, but is working as efficiently as possible.  Your assets and incomes need to be working together according to your specific goals, objectives and desires.

2.  Improper Risk Management

The key to investing is having the proper risk management system in place that helps achieve compounding returns by limiting portfolios to acceptable fluctuations, and by helping to avoid unacceptable declines.  In needs to be actively managed to adjust for all market environments. 

3.  Not having a tax management plan in place

During your pre-retirement and retirement years, you need to become as tax efficient as possible.  Have a plan in place to start getting money moved from fully taxable accounts into more tax efficient or tax-free accounts to allow your money to grow more efficiently.  Do not let your existing fully taxable accounts become more potent.  Have a plan in place to help diffuse this before it happens.

4.  Not keeping your planning up to date

Do not simply just do things the same way that you always have done.  Make sure to make changes to your planning on a regular basis;  to help ensure that your planning is always up-to-date and set up properly is critical to achieving your long-term financial goals.

5.  Paying too much in taxes.

A lack of proper tax planning can cause you and your family to pay too much in income and estate taxes. There are also a number of other taxes or tax-related issues that can help reduce retirement assets including estate taxes, Social Security and IRA pension disbursements.

6.  Not having an estate plan.

It is not a rule or law that you have to do estate planning or take out a simple will.  But if you take the time and make an effort to do this, you can and will save you and your family time, money and stress. 

7.  Not having a realistic long-term health care plan.

Failure to plan for health issues or the financial impacts of home care, nursing home costs, Medicare and Medicaid can be catastrophic to even the best retirement plans.

8.  Paying unnecessary investment fees that reduce investment savings.

Money management fees can be well worth the money, but unnecessary commissions on investments that diminish value in my opinion are a waste of money. 

9.  Procrastination.

The earlier people start planning for retirement, often the better the retirement plans and more comfortable their retirement years.

10. Planning your vacation rather than planning your retirement.

Many people put more thought and time into planning a vacation than they do planning for their retirement.  If you put in the effort, retirement planning will pay off.


These mistakes can be made by anyone, but the negative impacts are particularly severe for pre-retirees and retirees. People at or near retirement typically have more to lose and much less time to correct negative impacts. Restoration of retirement funds can happen. But before making any investment decisions, consult with a qualified and experienced retirement and estate-planning financial advisor. He or she can help you make the best decisions for your financial situation during today's volatile market, so your money is still there when you need it. 

Call 1-800-939-1603 to see how Hayes Advisory Group can help you now.