Retirement Planning

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Recommended: Retirement Plan Selection

If you think that you will be financially secure when you decide to retire just because you invest in a retirement plan, think again! Did you know that there are common mistakes on retirement planning that you should know about in which you can also use as a guide to reevaluate your status? If you are making these mistakes, you could be in a big trouble.

Here are some of the mistakes of retirement planning:

-Not taking full advantage of your company retirement benefits - it is wise that you invest money into your company retirement plan as much as you can afford.

-Withdrawing money from your retirement plan - Be very aware when availing of loans or withdrawals, because aside from losing interest, you could face penalties or early withdrawal …show more content…

-Relying on Social security for your retirement income - social security may provide a considerable share of your retirement income, still it can be of great help if you have other means of income as a back-up in case there are other unexpected expenses that might come up. In addition to social security, it would be best if you have a company pension or retirement plan and personal savings.

-Relying on your spouse's retirement plan - this is one of the most common mistake of retirement planning people do. It is possible that a spouse with a retirement plan could die leaving the other spouse with no income. Instances like divorce or illness can also bargain the only spouse retirement, therefore both spouses should have a separate retirement plan to best secure your retirement days.

-Forgetting to review your plan regularly - always conduct periodic review of your retirement plan to ensure that you are making the most of your plan.

-Practicing poor asset allocation - poor asset allocation can sometimes be a financial suicide. The secret is to broaden your horizons so that if one investment decreases in value, another will hopefully

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