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Planning our retirement is a wise move to ensure a
stable future once you decide to stop working. But sometimes, even a well
laid-out plan can suffer unexpected glitches. Fortunately, these can be avoided
if you know three of the most common mistakes that a retirement planner commits
and learning how to overcome them.
Satisfaction With Earnings From Initial Investment
You assume that once you have invested in some
retirement plan, there’s nothing else to do but to draw the accumulated savings
plus interest when you retire. You think that it is enough and will keep you
financially safe when you retire. Being satisfied with what your investment
will bring on your retirement day is not the way to go if you want to enjoy your
retirement. If you never bothered checking on your account to see if there is
room for improvement in terms of earning more, you are passing off a great
opportunity to have more when you retire.
To correct this mistake, your option is to make
additional contribution every year of at least one percent. You may not even
feel the burden of this one percent on your paycheck but it will make your
retirement funds to more than double of what you are supposed to get if you
didn’t look for other ways to increase your investment returns.
You might want to check this article about money myths
which could also help you prevent you from committing these retirement
mistakes.
Assuming That Saving One Percent Is Enough
Everyone has his own target of how much money he
should have when he retires. But if you are aiming for bigger retirement money,
then you’ll be disappointed because the additional one percent contribution to
your retirement fund every year will not get you close to your target
retirement money. You’ll have to increase your yearly contributions to achieve
or come close to your target retirement amount. Any additional contribution to
your funds regardless if small or big will surely have a significant and
noticeable impact on your nest egg when you retire.
You can do this by cutting on unnecessary expenses
that have little or no effect on your normal lifestyle. For example, you can
reduce your food expenses, or cut on personal luxuries and other day to day
expenses. Any amount that can be saved should be treated as your additional
contribution to your retirement funds.
You See Yourself As A Competent Saver
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