Seven mistakes that can upend your retirement

-- By Alabama Living Magazine

Pursuing your retirement dreams can be challenging and mistakes can cost time and money. Here are seven big mistakes to avoid when preparing for retirement:

1. No Strategy: The biggest mistake is having no strategy at all. The goals you set for yourself should be attainable; and how can a goal be attainable without a strategy? A goal without a strategy to reach is like a car with no motor. Creating a strategy will increase your potential for success, both before and after retirement.

2. Frequent Trading: Fear of missing out (FOMO) on the next “hot” investments often leads to despair. Create an asset allocation strategy that is properly diversified to reflect your objectives, risk tolerance, and time horizon; then adjust based on changes in your personal situation, not due to market ups and downs. 

3. Not Maximizing Tax-Deferred Savings: Workers have tax-advantaged ways to save for retirement. Not participating in your employer’s 401(k) could mean that you’re leaving money on the table in the form of employer-matching contributions.

4. Prioritizing College Funding over Retirement: Your children’s college education is important, but you may not want to sacrifice your retirement for it. There are loans and grants for college, but not for your retirement.

5. Overlooking Healthcare Costs: Extended health care is an expense that could derail your financial strategy for retirement if you are not prepared for it.

6. 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 at the moment you’re ready to stop working. Consider adjusting your asset allocation before tapping into your savings to avoid selling stocks when prices are depressed.

7. Retiring with Too Much Debt: If too much debt is bad when you’re making money, it can be treacherous while living in retirement. Carefully consider managing or reducing your debt level before you retire.

Alabama Rural Electric Credit Union is proud to offer Alabama ONE Wealth Advisory to our members! We offer comprehensive financial advice to help you plan for the future, invest, or maximize growth potential. Interested in our TEAM’s expertise? Contact them at (205) 341-0108 or at WealthAdvisory@AlabamaONE.org and visit AlabamaONEWealthAdvisory.com to set up a free consultation. 

Tyler Foster, Director of Wealth Advisory 

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Alabama One Credit Union (AOCU) and Alabama One Wealth Advisory are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Alabama One Wealth Advisory, and may also be employees of AOCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of AOCU or Alabama One Wealth Advisory. Securities and insurance offered through LPL or its affiliates are:

Not Insured by NCUA or Any Other Government Agency

Not Credit Union Guaranteed

Not Credit Union Deposits or Obligations

May Lose Value

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Award-winning Alabama Living is the official statewide publication of the electric cooperatives in Alabama and the largest magazine of its type in the state, reaching some 400,000 electric cooperative consumers.

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