40 COMMON RETIREMENT MISTAKES, NOT NECESSARILY IN ORDER. . .
- Using a 10.2% rate of return
- Market Definition of Diversity
- Assuming you have to invest aggressively to make money last
- Assuming Estate Planning is about Taxes
- Avoiding Annuities – The value of a personal pension
- Not Planning for Medical Custodial Needs
- Relying upon Pensions – Federal / State / Corporate
- Assuming inflation is 3 – 5%, trusting the CPI
- Buying Term that lasts just until the kids are out of the home
- Not owning Real Estate outright by age 60
- Assuming retirement is at age 65 or later
- Forgetting to plan for financial dependents
- Not understanding the power of grandchildren
- Not planning for age 100
- Assuming you will be in a lower tax bracket at retirement
- Avoiding Roth Conversions
- Thinking bonds are conservative
- Not Respecting the raw power of market downturns
- Assuming the worst is over for the debt / real estate crisis
- Forgetting still living parents
- Assuming your Business will sell
- Ignoring team work
- Allowing clients to avoid annual planning
- Assuming you can retire, especially type A’s
- Remember frugality
- Trusting historical market trends – the speed of communication and information
- Not planning for out of pocket medical costs
- Not keeping up to date – New blended products
- Baby Boomer Optimism
- Assuming cost of living goes down in retirement
- Forgetting lawsuits, asset protection in a litigious society
- Paying for college before locking up retirement savings
- Using price to make financial product purchasing decisions
- Trusting in the stability of the US government
- Avoiding bankruptcy to remove debt
- Planning for men and women in the same manner
- Using contemporaries for your professionals – Go younger
- The power of the voting class and entitlements
- Assuming the rich do not need to plan for custodial medical costs
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