Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

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

By Dan Caplinger and Mike Klesta - Mar 1, 2014 at 9:50AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

More Americans make this mistake with their retirement financial planning than any other. Find out the easy fix to make your benefits go further.

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/30/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.