5 Most Common Retirement Planning Mistakes

Today’s Prep:

Do you have a strategy in place to avoid these retirement planning mistakes? Eric talks through what to do instead to make sure your plan is a success.

(Click the featured times below to jump forward in the episode)

Equipping Points:

Nobody likes making mistakes, but it happens from time to time. What are the biggest retirement planning mistakes that people make and what can you do to avoid them?

A major mistake many make is ignoring or forgetting the future tax implications of your retirement savings. The vast majority of people save in qualified plans like a 401(k) or 403(b) that grows tax-deferred. You need to have a diversity of incomes coming from different tax sources: taxable, tax-deferred, and tax-free. You may need to move money from one bucket to another. Roth conversions are an easy way to do that.

People who start Social Security too early may end up regretting this. There’s a lot of strategy that goes into choosing when to start Social Security. The best way to determine what to do is to have a Social Security analysis to compare your options as a part of a bigger plan.

Are you paying more attention to your returns than your retirement income needs? The returns are easy to focus on but remember that you have to take risk in the stock market. The income equals the outcome, which is why you need to focus first on the income needs. The trend of the market will vary but you need a consistent flow of income.

Your friends and family mean well, but taking their advice for financial decisions is not the same as getting advice from a professional. The clearer your objectives are, the clearer your goals are, then the better the planning process is going to be. An advisor is going to ask the tough questions that you need to face when making a plan.

Being too aggressive or too conservative in the market will be a problem. How do you strike the right balance? It’s important to remember that it changes at different points in your life. You need to find a strategy. A plan will help you see what tools and what strategies you need to make your plan work.

Listen to the entire episode or skip ahead to a particular mistake using the timestamps below.

[1:01] – What are the top five retirement planning mistakes?

[1:09] – Ignoring the future tax implications.

[2:49] – Starting Social Security too early.

[5:05] – Focusing on returns vs. the income needed.

[6:56] – Taking advice from friends and family.

[8:25] – You have to find the right balance.

Today’s Takeaway:

The clearer your objectives are, the clearer your goals are, then the better the planning process is going to be.

-Eric Peterson

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Retirement Income Planning Essentials

September 23, 2021

What do you need to know about retirement income? From Social Security to planning for inflation, Eric breaks down the basics of what you need to know and how to make a plan that fits your future.

Read More

Easy Financial Improvements To Make

September 16, 2021

What’s a simple way to make your financial planning better? Today we are going to discuss some easy steps you can take to improve your financial plan.

Read More

Empty Nest Syndrome

September 9, 2021

Have all of your little baby birds left the nest? Today, we discuss the kind of financial decisions you may make in this next stage of life.

Read More

Retirement Quiz – Is That Your Final Answer?

September 2, 2021

We quiz Eric with a few multiple-choice questions all about retirement. Which one will he choose? Do you agree?

Read More

Moving On From Financial Mistakes

August 26, 2021

Instead of getting stuck in a rut after a financial mistake, it’s important to move forward in the right direction. So, what can you do to recover? Find out on today’s show.

Read More

Common Complaints About Financial Advisors

August 19, 2021

Are you feeling frustrated when it comes to your financial planning? If so, these three common financial complaints might make you feel like you aren’t alone, but also give you hope for a better scenario.

Read More

Navigating Retirement Disagreements Between Spouses

August 12, 2021

What do couples tend to argue about when it comes to their money in retirement? Eric talks through what you need to do to get on the same page.

Read More

The Retirement Countdown

July 29, 2021

In those final years before retirement, what should you be considering and doing now? We tackle a list of things you should do in the years before retirement.

Read More

Mailbag: Do I Need Long-Term Care Insurance If I Expect an Inheritance?

July 22, 2021

Looking for a way around paying for long-term care insurance? Will an inheritance cover it? Eric answers this question and two others from the mailbag.

Read More

401(k) Mistakes You Don’t Want To Make

July 15, 2021

Many of us have a 401(k), but what mistakes can get overlooked? Eric shares a few key points to keep in mind when it comes to your 401(k).

Read More

Leave a Comment