Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Investments»Small Mistakes Add Up. 4 Mistakes to Avoid When Investing for Retirement.
    Investments

    Small Mistakes Add Up. 4 Mistakes to Avoid When Investing for Retirement.

    August 3, 20255 Mins Read


    Preparing for retirement may involve making a few mistakes along the way. Here are four common mistakes you can easily avoid.

    A 2025 “State of Retirement Planning” study by Fidelity found that 67% of Americans feel good about their retirement prospects, down 7% from last year. I can guarantee you, at one time, I would have been among the 33% saying, “There’s no way I’ll be ready.” However, that was before I realized that prepping for retirement involves making a “to-do” list and sticking with it.

    I was born a worrier (or so my parents always claimed), but I enjoy a good to-do list. Lists give me a sense of direction and help me see when I’m falling off track. My list includes things I should do, like maxing out my 401(k), and mistakes I must avoid, like making knee-jerk reactions to sudden changes in the market.

    It took me a while to realize that no one gets it exactly right. Everyone makes mistakes, even seasoned investors. The trick is to correct mistakes as you identify them, and avoid new mistakes whenever possible.

    This is where it gets tricky, because some of the most common mistakes are the easiest to make. Here are four of those investment mistakes and what you can do to avoid them.

    Three people laughing.

    Image source: Getty Images.

    1. Putting investments on the back burner

    When I was young, I remember thinking I had plenty of time to plan for retirement. After all, it was next to impossible to imagine myself in my 60s. Heck, it’s still hard for me to imagine being in my 60s, yet here we are. Although I have no intention of ever retiring, I know my husband does, and the years are ticking by.

    Even when I got semi-serious about saving for retirement, life got in the way. First, it was the Great Recession. Our investments were decimated, and we lost a bundle on a home we’d foolishly overpaid for.

    Right on the heels of the Great Recession came a brain tumor and medical costs that pretty much wiped out anything that was left. It was a discouraging time (to put it mildly), but it was also one of the most instructive times of my life.

    At that point, we committed to two things: living below our means, and prioritizing our investments. At one time, we’d pay bills, spend money on things we wanted, and invest what was left over. That came to an end when it became clear that we had some serious catching up to do.

    The first “bill” we pay each month is our investments. We base our household budget on the money left over. The reason is simple: If we’re fortunate enough to reach retirement age, we will need every dime we’ve invested.

    2. Thinking your employer match is too small to amount to much

    Besides the start-ups he’s worked for, my husband’s employers have always offered a 401(k) match. Sometimes it was 3% and sometimes more, but no matter how much it was, I remember wondering if matching funds really impacted our retirement account.

    Imagine an employer offering to match the first 3% of a $100,000 salary. That’s $3,000 per year — not terribly impressive until you factor compound interest in. If that money went into an investment vehicle with an average annual return of 7%, the company’s match would provide just shy of $123,000 extra to take into retirement. That money could do all kinds of things, from paying for long-term care premiums to making home repairs.

    No matter how much your employer offers to match, it’s free money, and you’ll be glad to have it one day.

    3. Carrying too much debt

    Debt is a sticky thing. It makes it possible to buy things you might not otherwise be able to afford, but it can be hard to shake once you’ve committed to it.

    Suppose you have $10,000 in credit card debt and pay an average interest rate of 26%. If you make a $250 payment each month, it will take you nearly eight years to pay off, and you’ll end up paying $13,500 in interest alone (in addition to the $10,000 principal owed).

    If you were to pay off that high-interest debt and put the $250 per month into an investment account earning an average annual return of 7%, it would be worth $30,780 in eight years.

    Debt can derail your retirement plans unless you cut it from your life — particularly high-interest debt.

    4. Forgetting to update important documents

    When you’re busy, it’s easy to allow small things, like updating essential documents, fall through the cracks. How do you feel about the money in your accounts, including savings, checking, or retirement, going to someone you don’t intend it to go to when you die?

    Suppose you don’t regularly review financial documents to check beneficiary information. In that case, you risk leaving your hard-earned funds to an ex-spouse, a charity that’s gone out of business, or another unintended recipient.

    As you review your portfolio and other important documents each year, ensure the beneficiaries are who you want them to be.  Whether you’re driving a car, baking a cake, or investing for retirement, the little things matter.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Five reasons why a retirement village is a good move for pensioners

    Investments

    7 Retirement planning sins you need to unlearn right now – Money Insights News

    Investments

    How I structure investment property loans for maximum tax perks

    Investments

    Here’s why Canadians should limit their exposure to U.S. investments

    Investments

    The Kevin Bacon Rule of Retirement

    Investments

    Stanbic IBTC Insurance inspires retirees to embrace fulfilment in retirement

    Investments
    Leave A Reply Cancel Reply

    Top Picks
    Fintech

    SFI : 4 millions de dollars pour un fonds de capital-risque panafricain dirigé par des femmes

    Precious Metal

    Gold Price Up 40% in One Year Amid Market Volatility

    Fintech

    Self-made billionaire Jenny Just on growing a fintech empire, getting comfortable with failure and making way for other women

    Editors Picks

    Maximizing Yield: Small Changes Lead to Big Profits Amid Low Commodity Prices

    October 24, 2024

    Saving Zim’s soil and averting agricultural land degradation for food-secure future

    June 28, 2025

    Letter of the Day | Lessons from M-PESA for Jamaica | Letters

    July 13, 2024

    Best Cryptocurrency to Invest in 2025, Mutuum Finance (MUTM) The Next Crypto Project to Explode Past $2

    August 18, 2025
    What's Hot

    Ex-Oath Keepers, Including Heavy Metal Guitarist, Get Probation for Jan. 6

    October 25, 2024

    AJ Bell étend son partenariat avec Amundi et choisit Amundi Technology pour optimiser ses solutions de gestion de portefeuille

    May 15, 2025

    Charting India’s agricultural future: Budget 2025

    January 17, 2025
    Our Picks

    Canada’s Market Climbs As Gold Hits Record Highs

    October 18, 2024

    Inverkip property: Four bedroom detached family home

    June 29, 2025

    Candice Miller’s wealthy real estate mogul husband ‘owed $17 million’ before he died by suicide in garage of $8M home

    July 21, 2024
    Weekly Top

    FinMin raises alarm over unregulated digital deals

    August 23, 2025

    Criminals funnelling dirty money into UK pushing up London property prices

    August 23, 2025

    HTX Proudly Announces Justin Sun Named Innovator of the Year at Asia FinTech Awards 2025

    August 23, 2025
    Editor's Pick

    Fintech bytes: Income Lab, RISR ink additional integration partnerships

    August 8, 2025

    Dundee Precious Metals Delivers Record Free Cash Flow and Adjusted Net Earnings; Announces Second Quarter 2025 Results

    July 31, 2025

    ’We better have some gold and silver when problems arise’: Jim Rogers

    August 28, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.