THREE COMMON RETIREMENT INVESTMENT ERRORS

Nov 11, 2019

When you create a financial plan for your retirement, saving is essential, but investing your savings is equally significant. As your retirement plan takes form, watch out for these common investment errors.

Not Diversifying

Diversifying your investment means putting your capital into a variety of money making opportunities. If you prefer safe investments, focus on money market accounts, and government bonds. If you are also concerned with inflation, the stock market is a place to potentially grow your funds over a long time horizon. With any investment, remember to diversify. Investment diversification can help provide both safety and growth. Asset Allocation and/or Diversification of your overall investment portfolio does not assure a profit or protect against a loss in declining markets

Removing Funds Early

When you have a retirement account, you should leave the money in there until you retire. If you take any or all of it out early, you may be assessed a penalty, and you may also lose some of your investment earnings. For example, if you have invested part of an IRA in a Certificate of Deposit, and you pull it out before the five year required investment period, you will lose three months of earnings.

Not Investing

Another common retirement savings error is not investing your savings. When your funds sit for a long period of time in just one account, you run the risk of the interest earnings from that account being less than the rate of inflation. When this occurs, the value of your funds will decrease over time. Investment isn’t just about growing your reserves; it is also about keeping the value of your money above the rate of inflation.

Securities offered through Avantax Investment ServicesSM, Member FINRASIPC. Investment advisory services offered through Avantax Investment ServicesSM. Michele Tutoli insurance License # 0D57837. We currently have individuals licensed to offer securities in the states of Arizona, California, Colorado, Hawaii, Idaho, Illinois, Missouri, New Jersey, North Carolina, Nevada, New York, Oregon, and Utah. This is not an offer to sell securities in any other state or jurisdiction.

Page Tools

  • Share this page SHARE
  • Print Friendly and PDF

Other Articles You May Find Useful

UNDERSTANDING YOUR 401(K): TRADITIONAL VS. ROTH
HOW TO ENSURE YOUR INSURANCE MONEY GOES TO THE INTENDED BENEFICIARY
TWO TRUSTS TO CONSIDER
Taxes
Understanding the Role of the Trustee

Leave a Reply

  • (will not be published)

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>