Getting ready for retirement requires a lot of thought and planning. Although you might be excited about your next step in life, it’s important to make sure you’re planning properly. One misstep could significantly hamper your progress. There are some deadly retirement planning sins you would be smart to avoid.
Here are seven mistakes people make when saving for retirement. Are you making one of them? We’ll also take a quick look at some surprising retirement secrets to make the most of your golden years.
Don’t be prideful if you’re hitting your retirement savings goals. Although it’s OK to feel good about reaching your goals, don’t get too comfortable. All it takes is an event like an illness or sudden job loss to get you off track. That’s why it’s important to have a financial backup plan. Make sure to have a solid emergency savings fund in place, proper insurance, and a side job to help you stay afloat until your finances get back to normal. This way you can avoid having to take a hardship withdrawal against your retirement account.
Next: You don’t have the luxury of getting angry.
Since most companies don’t offer defined benefit pension plans anymore, most employees are on their own when it comes to padding their retirement nest egg. Consequently, you might be angry about having to save for retirement. However, you don’t have the luxury of getting angry. This will only cause you to delay getting started. Instead, use all that energy to build a solid savings plan. A certified financial planner can help you get on the right track.
Next: More isn’t always better.