40 COMMON RETIREMENT MISTAKES, NOT NECESSARILY IN ORDER. . .

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  • 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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