3 Retirement Planning Mistakes to Avoid

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Discover 3 retirement planning mistakes to avoid for a secure future. Learn how safe money alternatives can help you plan effectively. Explore now! How should I invest for retirement? And during retirement? There’s a lot of great advice to answer these questions – a wealth of strategic financial tips for nest eggs of all sizes. But equally important is what not to do. Below are 3 retirement planning mistakes—avoid them at all costs. 3 Costly Retirement Mistakes You Should Avoid 1. Don’t underestimate budgeting. In your 40s, 50s you were careful to keep a budget, so don’t stop during retirement. This doesn’t mean tightening the belt to secure a fixed income for the long haul – one that may control and limit your lifestyle. Retirement is something to look forward to! To do what you’ve always wanted to do. Luckily, careful planning can actually increase your spending budget for a lifestyle that opens more possibilities. For example, with proper budgeting, you may pay up to 30% less on expenses than before you retired. How is this possible? Well, after you retire, you can subtract commuting, retirement contributions, and possibly reduced taxes – just to name a few expenses. But whether your retirement budget is more costly than your working-years budget depends, in large part, on your post-work lifestyle expectations. A financial professional can help you create a budget that puts forth a bigger cushion to do exactly want you want in retirement with less worry. 2. Don’t be 100% risk-averse or risk-tolerant. Strike a balance when investing your retirement money. Diversified across multiple asset classes. Being too risk-averse or too aggressive could put your portfolio out of balance. Basically, investing your retirement savings is a double-edged sword that warns against becoming too cautious as an investor while simultaneously moving toward more conservative, short-term investments that allow you to preserve and access your money. Before you were 50 or even 60 years old, an advisor likely balanced your portfolio with aggressive growth products and more resilient, stable investments to hedge against market volatility and lows—even recessions. Some recommend a 50/50 portfolio in equities and fixed investments, others are more conservative. But it’s important to stay ah