(6) Focusing On One Risk Only
It is one of the highly ignored retirement investment mistakes to avoid. Most of the people need to get significant returns on their invested retirement portfolio. This will ensure a stronger retirement with enough amount of money.
As a general rule, amount of return is directly proportional to amount of risk taken by an investor. Therefore, one needs to invest in risky assets like stocks, mutual funds, bonds, etc.
According to a recent survey conducted by mutual fund company Franklin Templeton, about 37% of long-term investors believe to achieve retirement investment goals without investing in stocks.
But, avoiding stock market risk actually increases the other types of risk such as longevity risk or risk of outliving your money. Thus, you should invest wisely in multiple investment options for your old age.
You can do this by including high to low risky assets, to even in assets without risk. You should never hesitate to gradually shift the portfolio towards less risky options near your old age.
[Read Also: Top 10 Secrets Retirees Will Never Tell You]
(7) Making Investments Aimlessly & Aggressively
It is one of the most common retirement planning mistakes to avoid. Several newbie investors follow the herd for investments in money markets. They often invest without even analyzing the fundamentals & growth prospects of a company.
These investors often invest aggressively & aimlessly in stocks on false speculation without an investment plan. But, when the market pulls back they are often the first one to get stuck.
Once you get stuck in such stocks at much higher prices, it is quite difficult to be recover your money anyhow. This often results in huge losses to your portfolios.
Similarly, employees invest aggressively & heavily in their own company-sponsored plans without diversifying their portfolios. Thus, you should invest in stocks by properly diversifying your portfolio by taking valuable tips from stock analysts & financial advisers.
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