Common Mistakes

Are you planning to retire?  Here are a few common mistakes to steer clear of, if possible, while preparing for retirement:

Overlooking Health Care Costs
Health care costs are projected to continue their current annual increase in rate of more than double or triple the rate of inflation. Extended care may be an expense that can undermine your financial strategy for retirement if you fail to prepare for it.

Not Adjusting Your Investment Approach Well Before Retirement
The last thing your retirement portfolio can afford is a sharp fall in stock prices and a sustained bear market as you leave the work-force. Consider adjusting your asset allocation as you transition from living off your paycheck to living off your savings and investments. Because the return and principal value of stock prices will fluctuate as market conditions change, your shares, when sold, may be worth more or less than their original cost. Asset allocation is an approach to help manage investment risk. Remember, asset allocation does not guarantee against investment loss and past performance does not guarantee future results.

Retiring with Too Much Debt
If too much debt is bad during the earning years, it can be especially harmful for those living in retirement. Consider managing or reducing your debt level before you retire.

Retirement Planning Is Not Only About Money
Above all, a rewarding retirement requires good health. So, maintain a healthy diet, exercise regularly, stay socially involved, and remain intellectually active.

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