{"id":7223,"date":"2013-12-04T12:59:02","date_gmt":"2013-12-04T20:59:02","guid":{"rendered":"http:\/\/www.marketriders.com\/investing\/?p=7223"},"modified":"2016-12-21T07:28:17","modified_gmt":"2016-12-21T15:28:17","slug":"five-retirement-investment-mistakes-avoid","status":"publish","type":"post","link":"https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/","title":{"rendered":"Five Retirement Investment Mistakes To Avoid"},"content":{"rendered":"

Many investors see\u00a0retirement\u00a0as the goal line, the point after which you can coast along on your portfolio with little worry, no\u00a0retirement\u00a0investment<\/a>\u00a0mistakes ahead to make.<\/p>\n

After all, you’ve arrived, right? Yes, and you can lose that money, too. If anything,\u00a0retirement\u00a0is the time when you it pays to take more, not less, care of your investments.<\/p>\n

\"retirement<\/a><\/p>\n

Here are five\u00a0retirement\u00a0investment<\/a>\u00a0mistakes to avoid at all costs:<\/p>\n

1. Overspending in the first few years<\/strong><\/p>\n

Many times, new retirees “celebrate” their change of life by taking on new debts in the form of a larger home, new cars or extravagant vacations. Then the\u00a0stock market<\/a>\u00a0hands them a down quarter and things get tight.<\/p>\n

The fix:<\/strong>\u00a0Build a no-frills survival budget and live on it the first 18 months. Setting your spending levels firmly will help you avoid major problems down the road.<\/p>\n

2.\u00a0Falling into the annuity trap<\/strong><\/p>\n

Retirees often roll money out of company 401(k) plans and then realize that they have no experience with investing and little will to learn. So they become easy prey for salesmen offering annuities that promise worry-free, seemingly risk-free money management. Once the retiree realizes the cost of built-in\u00a0annuity fees<\/a>,\u00a0it’s too late to get out without paying a stiff penalty.<\/p>\n

The fix:<\/strong>\u00a0Make no major changes for at least six months after leaving work, other than perhaps doing the\u00a0rollover into an IRA<\/a>. Then carefully consider all of your options, perhaps with the help of a “fee only”\u00a0financial advisor who doesn’t derive his or her income from sales commissions.<\/p>\n

3. Underestimating the corrosive power of inflation<\/strong><\/p>\n

Many new retirees fail to understand how much they will need in\u00a0retirement. Then they also drastically underestimate how long their purchasing power will hold up over decades of life in\u00a0retirement.<\/p>\n

The fix:<\/strong>\u00a0In ideal markets, it takes 7 years to double your money and about 25 years for it to lose half its value from\u00a0inflation<\/a>. Accordingly, the best long-term investment portfolio will bring you a return above inflation with\u00a0as little risk as possible<\/a>.<\/p>\n

4. Owning far too much high-risk stock<\/strong><\/p>\n

What better hobby in\u00a0retirement\u00a0than\u00a0picking stocks<\/a>?\u00a0Unfortunately, the volatility that comes from a heavy equity position can play havoc with your emotions, leading to panic selling and other dangerous outcomes.<\/p>\n

The fix:<\/strong>\u00a0Dial back risk and rely instead on a\u00a0portfolio of bonds, real estate and dividend-paying blue chip stocks<\/a>\u00a0to reduce the risk of panic.<\/p>\n

5. Owning far too little equities for your age<\/strong><\/p>\n

If your portfolio is\u00a0bonds only<\/a>, you run the risk of losing ground to inflation (No. 3) or panicking if rates rise and bond values plummet (No. 4).<\/p>\n

The fix:<\/strong>\u00a0A small percentage of equities can bring you the extra bump of return you need to offset rising inflation over long periods, so keep at least some in your\u00a0retirement\u00a0portfolio<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Many investors see\u00a0retirement\u00a0as the goal line, the point after which you can coast along on your portfolio with little worry, no\u00a0retirement\u00a0investment\u00a0mistakes ahead to make. After all, you’ve arrived, right? Yes, … Read more →<\/span><\/a><\/p>\n","protected":false},"author":8,"featured_media":7225,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_wp_rev_ctl_limit":""},"categories":[8],"tags":[],"yoast_head":"\nFive Retirement Investment Mistakes To Avoid | MarketRiders<\/title>\n<meta name=\"description\" content=\"Many investors see retirement as the goal line. Far from it. Here are five retirement investment mistakes to avoid at all costs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Five Retirement Investment Mistakes To Avoid | MarketRiders\" \/>\n<meta name=\"twitter:description\" content=\"Many investors see retirement as the goal line. Far from it. Here are five retirement investment mistakes to avoid at all costs.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2013\/12\/512px-NYSE.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@marketriders\" \/>\n<meta name=\"twitter:site\" content=\"@marketriders\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"MarketRiders\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/\",\"url\":\"https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/\",\"name\":\"Five Retirement Investment Mistakes To Avoid | MarketRiders\",\"isPartOf\":{\"@id\":\"https:\/\/www.marketriders.com\/investing\/#website\"},\"datePublished\":\"2013-12-04T20:59:02+00:00\",\"dateModified\":\"2016-12-21T15:28:17+00:00\",\"author\":{\"@id\":\"https:\/\/www.marketriders.com\/investing\/#\/schema\/person\/f2be262f5c0f3ed5ad50d6c40640ba8c\"},\"description\":\"Many investors see retirement as the goal line. Far from it. Here are five retirement investment mistakes to avoid at all costs.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.marketriders.com\/investing\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Five Retirement Investment Mistakes To Avoid\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.marketriders.com\/investing\/#website\",\"url\":\"https:\/\/www.marketriders.com\/investing\/\",\"name\":\"MarketRiders.com\",\"description\":\"How To Become A Better Investor\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.marketriders.com\/investing\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.marketriders.com\/investing\/#\/schema\/person\/f2be262f5c0f3ed5ad50d6c40640ba8c\",\"name\":\"MarketRiders\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.marketriders.com\/investing\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/8e06113f594828daaf313d283544d566?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/8e06113f594828daaf313d283544d566?s=96&d=mm&r=g\",\"caption\":\"MarketRiders\"},\"sameAs\":[\"https:\/\/www.marketriders.com\"],\"url\":\"https:\/\/www.marketriders.com\/investing\/author\/support\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Five Retirement Investment Mistakes To Avoid | MarketRiders","description":"Many investors see retirement as the goal line. Far from it. Here are five retirement investment mistakes to avoid at all costs.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/","twitter_card":"summary_large_image","twitter_title":"Five Retirement Investment Mistakes To Avoid | MarketRiders","twitter_description":"Many investors see retirement as the goal line. Far from it. Here are five retirement investment mistakes to avoid at all costs.","twitter_image":"https:\/\/www.marketriders.com\/investing\/wp-content\/uploads\/2013\/12\/512px-NYSE.jpg","twitter_creator":"@marketriders","twitter_site":"@marketriders","twitter_misc":{"Written by":"MarketRiders","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/","url":"https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/","name":"Five Retirement Investment Mistakes To Avoid | MarketRiders","isPartOf":{"@id":"https:\/\/www.marketriders.com\/investing\/#website"},"datePublished":"2013-12-04T20:59:02+00:00","dateModified":"2016-12-21T15:28:17+00:00","author":{"@id":"https:\/\/www.marketriders.com\/investing\/#\/schema\/person\/f2be262f5c0f3ed5ad50d6c40640ba8c"},"description":"Many investors see retirement as the goal line. Far from it. Here are five retirement investment mistakes to avoid at all costs.","breadcrumb":{"@id":"https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.marketriders.com\/investing\/five-retirement-investment-mistakes-avoid\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.marketriders.com\/investing\/"},{"@type":"ListItem","position":2,"name":"Five Retirement Investment Mistakes To Avoid"}]},{"@type":"WebSite","@id":"https:\/\/www.marketriders.com\/investing\/#website","url":"https:\/\/www.marketriders.com\/investing\/","name":"MarketRiders.com","description":"How To Become A Better Investor","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.marketriders.com\/investing\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.marketriders.com\/investing\/#\/schema\/person\/f2be262f5c0f3ed5ad50d6c40640ba8c","name":"MarketRiders","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.marketriders.com\/investing\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/8e06113f594828daaf313d283544d566?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8e06113f594828daaf313d283544d566?s=96&d=mm&r=g","caption":"MarketRiders"},"sameAs":["https:\/\/www.marketriders.com"],"url":"https:\/\/www.marketriders.com\/investing\/author\/support\/"}]}},"_links":{"self":[{"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/posts\/7223"}],"collection":[{"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/comments?post=7223"}],"version-history":[{"count":2,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/posts\/7223\/revisions"}],"predecessor-version":[{"id":7227,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/posts\/7223\/revisions\/7227"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/media\/7225"}],"wp:attachment":[{"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/media?parent=7223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/categories?post=7223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.marketriders.com\/investing\/wp-json\/wp\/v2\/tags?post=7223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}