Top Retirement Planning Mistakes to Avoid

Avoiding retirement planning mistakes...

Planning for retirement is something we all know we should be investing more time and money in, but for one reason or another, we procrastinate.

We don't take full advantage of our time, resources and assets.

Recognizing this, the best time to start is now.

Adequately planning for retirement can take less time and money than most think.

Here are the top seven worst retirement planning mistakes you could make and how to easily avoid them.

1. Of course, first on the list is not taking the significance and reality of retirement planning seriously.

Whether you plan on retiring ten, twenty, or thirty+ years from now, time will move quick and before you know it you will be on the verge of retirement. What many people fail to recognize is how many years after age 65 there could be and how expensive each year could be.

Think of all your necessary expenses now (mortgage, rent, car, etc), add in food/supplies, home/car maintenance, and a whopping increase in medical care, prescriptions and visits. Multiply that number by 15-20 years. This is why the sooner you start planning the better, and the more you can contribute...however seemingly small...will help.

2. Second big mistake, would be to consider that your Social Security benefits will be enough.

In most cases, monthly Social Security benefits only allow senior citizens to squeak by. Not to mention that the whole plan is rumored to be phased out so that less and less Social Security benefits are allocated, generation by generation. Pretty scary.

3. Relying too heavily on your spouse’s retirement savings or plans.

Retirement plans are set up based upon one income and therefore are really only meant to support one retired individual. Moreover, there is always the possibility that you may not be married to this person forever, and what happens then? The sole source of your retirement income is obliterated in one fel swoop and time has run out.

4. Another of the major retirement planning mistakes is to not be fully aware of what employee options you may have through your employer.

Research available 401k plans, stock options, employee matching programs, etc through your employer. Many companies offer great retirement plans and not taking advantage of yours could be a huge detriment to your retirement future.

5. Next, even if some of us know what our plans are through our company or individual programs, we do not keep informed on the progress of these plans (this is one of the major retirement planning mistakes). Keeping on top of just how much money we are earning and saving in our current plans helps us make solid, wise decisions along the way.

Perhaps, your 401k is not earning at the rate you would like. Knowing this, you can look around for other supplemental programs to help augment your retirement planning.

6. Another of the huge retirement planning mistakes is not seeking out the advice of a financial advisor or planner. These experts work with everyone from minimum wage earners to the Rockefellers, so certainly do not be intimidated by their title.

Everyone deserves a strategic plan for the money they earn and accumulate. Financial advisors can help you begin this process and maximize your income and savings in a variety of account, plans, investments and the like...at competitive interest rates.

7. Lastly, another important mistake that many find themselves making is putting all their investments and savings into one financial basket. This is when that heavily-coined term ‘diversifying’ comes into play.

This ties in with; both keeping informed of current investment trends, interest rates, etc and also gleaning important tips from industry experts (such as your financial planner)...but the gist is to sprinkle your savings into various plans, programs, accounts and stocks so that if one bottoms out you will not be left with nothing to afford even a modest retirement lifestyle.