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Retirement Savings: The Young, Rich, and Stupid

There are lots of stupid things that rich people do, and a recent survey found one that -- if you did it yourself -- could ruin your chances for a comfortable retirement.

The survey was conducted by Fidelity, and it asked millionaires from generations X and Y what some of their investment patterns were. Generally, these two generations span from 1965 to 2004 -- a huge range. This means that the millionaires Fidelity talked to were likely between the ages of 21 and 49.

Fidelity found that the average millionaire of this age made 30 investment trades per month. That's an astounding 360 trades per year. This triple-whammy of investment stupidity means that these millionaires are kissing their fortunes goodbye and making it highly unlikely that they'll be able to continue the same kind of lifestyle once they hit retirement age.

In the slideshow below, you'll see how such an approach results in higher transaction costs, higher taxes, and lower overall returns. And I'll show you one super-simple strategy that can lead to much better investing.

Take advantage of this little-known tax "loophole"
Recent tax increases have affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report "The IRS Is Daring You to Make This Investment Now!," you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.

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Brian Stoffel

Brian Stoffel has been a Fool since 2008, and a financial journalist for the Motley Fool since 2010. He tends to follow the investment strategies of Fool-founder David Gardner, looking for the most innovative companies driving positive change for the future.

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