On The Agenda:

Today, we’ll share some of the classic retirement planning mistakes we see people make, and it’s not just rookies making the mistakes.

Click The Play Button To Listen Now:

Subscribe On Your Favorite App:

Apple PodcastsSpotifyGoogle PodcastsAmazon MusicStitcherTuneIn

Episode Show Notes:

On this episode of How Money Works, Craig and Jennifer Moser explain some of the common retirement mistakes people make and how you can avoid them.

1) Investments with no purpose

Over time, a lot of people tend to accumulate cash and investments that don’t really have a defined purpose. They might not be a bad thing for you to own, but you don’t really know that until you know how they fit into your overall plan.

First, you need six months of expenses saved in cash. Then, invest in dividend paying stocks and do it on dividend reinvestment, and add to it monthly. Save in your 401k up to match. Buy some convertible term life insurance. Make sure you have a will, health care power of attorney and a power of attorney.

2) Not understanding risk

Plenty of people who consider themselves to have a low risk tolerance have a lot more risk in their portfolio than they think. This could happen for a couple of reasons:

  • They’ve been misled about how much risk a particular investment carries.
  • They think that diversification absolves them from risk. But it doesn’t, and there’s a good chance that they’re not as diversified as they think.

3) Emotional decision-making

If you’ve been investing for a long time, it’s easy to think that you’re immune to acting emotionally. When stock prices are high, people feel the wealth effect. They feel more confident and spend more.

Listen to the full episode or use the timestamps below to jump to a certain section. Thanks for listening.

Important Points:

1:15 – Investments with no purpose

5:35 – Not understanding risk

7:49 – Emotional decision-making

Other Resources:

Click here for more podcast episodes.

Call 336-448-1086 for a complimentary financial review.

Ask Craig & Jennifer a question by emailing: info@maestrowealth.com

Follow us on Facebook, LinkedIn, and YouTube.