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You probably already have a financial plan in place, some savings, and a target age for when it’s time to retire and enter your golden years.
But many Americans don’t pay enough attention to financial planning for retirement—an oversight that can have serious consequences for the quality of life they’re able to maintain in their later years.
Here are three careless mistakes that could keep you from winning in retirement.
Inflation can seriously erode your nest egg, and ignoring or ignoring its impact can be a big mistake.
If you retire today, you can expect to face an inflation rate of approximately 2.42% over the next 30 years, according to the Federal Reserve’s projections(1).
These increases may not seem like much on an annual basis, but they add up over time. For example, at an interest rate of 2.42% per year, a $100 grocery bill today will cost you more than $124 ten years from now.
Consider building a diversified portfolio and talking to a financial advisor. Assets such as gold, real estate investment trusts and inflation-protected bonds may help protect your portfolio against inflation, although they are not suitable for everyone.
Gold has long been viewed as a safe-haven asset in times of market uncertainty.
Priority Gold is a leader in the precious metals industry, providing physical delivery of gold and silver. Additionally, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.
If you want to convert an existing IRA to a gold IRA, Priority Gold offers 100% free rollover, free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.
To learn more about how Priority Gold can help you reduce the impact of inflation on your savings, download their free 2025 Gold Investor Bundle.
You can also adjust your spending habits, such as creating (and sticking to) a budget, shopping around for lower car insurance rates, and lowering food costs through meal plans and coupons.
If managing a budget feels overwhelming, apps like Rocket Money can simplify the process.
Rocket Money tracks and categorizes your spending, providing a clear view of your cash, credit, and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and potentially save hundreds of dollars each year.
For a small fee, the app can also negotiate a lower rate on your monthly bill, making it a valuable tool for keeping your finances on track.
There are two ways you can pay too much tax on your retirement income—not accounting for taxes on Social Security benefits, and not planning on taxing account withdrawals.
For example, if you file a joint income tax return with your spouse and your combined income exceeds $44,000 per year, up to 85% of your Social Security benefits may be taxed. You can use online IRS tools to determine whether your benefits are taxable.
Withdrawals from tax-advantaged accounts, such as 401(k)s and individual retirement accounts (IRAs), will be taxed as ordinary income, so you’ll also need to account for that in your planning and budgeting.
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A financial planner can help you design a tax-efficient withdrawal strategy, but you need to start the process long before retirement because some strategies, such as Roth conversions, may be more tax-efficient if performed for a few years.
If you choose to invest in stocks to build your retirement nest egg, you may already use a robo-advisor service.
You don’t always need to save a lot of money to achieve your retirement goals. $10 a week can make a difference – if you’re smart about how to use your change.
When you make a purchase with a credit or debit card, Acorns automatically rounds the price to the nearest dollar and puts the excess (the coins that would end up in your pocket if you paid cash) into a smart portfolio.
Suppose you purchase a donut for $2.30. Before you lick the candy off your fingers, Acorns rounds the amount to $3.00 and invests you the 70 cents difference. Look at this math: $2.50 worth of daily rollup adds up to $900 per year – and that’s before your savings make money in the market.
It’s also important to plan for changes in your investment strategy before and after retirement.
Retirees often fall into two camps: those who invest too aggressively and risk huge losses, and those who invest too conservatively and risk not being able to sustain their money long enough.
When you retire, you may want to move to a more conservative portfolio to protect your earnings and buffer your savings from stock market fluctuations. But you can also balance this out by holding some stocks so your savings continue to grow (which also protects against inflation).
You need to make sure that your investment portfolio can support your planned income stream throughout retirement, including required minimum distributions, and that they are also as tax-efficient as possible.
Financial planning is more than just a savings strategy. It’s important throughout your life—and it doesn’t stop in retirement. This is why many people turn to a trusted financial advisor.
If you’re looking for financial advice, Advisor.com connects you with vetted fiduciary financial advisors near you. All you have to do is answer a few simple questions about your finances and Adivsor.com will match you with a short list of certified experts to choose from.
You can then schedule an introductory meeting without hiring.
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Federal Reserve Bank of St. Louis(1)
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.
