Recs

11

The Biggest Retirement Mistake People Make (And How You Can Avoid It)

Planning for retirement takes a lifetime of hard work. But most people make a crucial mistake that can cost add up to hundreds of thousands of dollars less in their retirement nest eggs after they leave their careers.

In the following segment from their video guide to investment planning, Motley Fool director of investment planning Dan Caplinger talks with Fool markets/IP bureau chief Mike Klesta about this crucial mistake. Dan notes that most people are too conservative with their retirement investments, especially as they get closer to retirement. Although the impulse to avoid major losses of investment capital is natural, Dan notes that the long lifespans after people retire makes it necessary to consider putting more money into growth assets like stocks, relying less on bonds and cash. Combined with Social Security to help address the risk of outliving your money, Dan concludes that being willing to invest more aggressively -- even if it's in relatively conservative stocks -- can add up to huge amounts of extra money over the course of your lifetime.

The role Social Security plays
For retirement planning, being smart with your Social Security benefits is essential. In our brand-new free report, "Make Social Security Work Harder for You," our retirement experts give their insight on making the key decisions that will help ensure a more comfortable retirement for you and your family. Click here to get your copy today.


Read/Post Comments (1) | Recommend This Article (11)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 01, 2014, at 11:27 AM, carlytx wrote:

    The biggest mistake people make before retirement is not to start planning and saving/investing early in life. The power of compounding is lost on many people. The biggest mistake many make after retirement is becoming inactive and not living life to the fullest. I just read several great posts on the retirement site Retirement And Good Living about what people are doing during retirement: sailing full time, RVing in the US and New Zealand, surfing in Nicaragua and Costa Rica, retiring overseas, volunteering and more. Gives you a perspective of the possiblities.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2860120, ~/Articles/ArticleHandler.aspx, 9/17/2014 4:07:35 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger
TMFGalagan

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated Moments ago Sponsored by:
DOW 17,160.93 28.96 0.17%
S&P 500 2,001.18 2.20 0.11%
NASD 4,563.11 10.35 0.23%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes


Advertisement