Most people assume retirement planning is all about numbers: your portfolio balance, the right asset allocation, or the timing of Social Security. But the truth is, most retirees don’t struggle because of market performance—they struggle because of avoidable retirement mistakes.
The good news? You don’t need to overhaul your entire plan. Often, just a few smart tweaks can fix 95% of the problems people face when transitioning into retirement.
Resources:
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- FREE RETIREMENT READINESS REPORT
- Retirement Needs Template
- How to Pay $0 Tax on $100k Retirement Income
Mistake #1: Staying in an Accumulation Mindset
After decades of saving and deferring gratification, many retirees find it difficult to switch gears. They’ve mastered the art of saving—but haven’t developed a plan for spending confidently. Without a shift from accumulation to distribution, fear and hesitation creep in.
A key retirement tweak? Develop a clear withdrawal strategy. Know how much you can spend, when to take it, and from which accounts. That clarity alone can resolve a huge portion of retirement stress.
Mistake #2: Ignoring Tax Timing
One of the most costly retirement mistakes is overlooking the tax impact of Required Minimum Distributions (RMDs). Waiting until age 73 to take withdrawals from your IRA might seem wise—but it can backfire.
Instead, consider small Roth conversions earlier in retirement. Strategic withdrawals in your lower-income years can reduce future tax brackets and save you significantly over time.
Mistake #3: Being Too Conservative (or Too Aggressive)
Many retirees panic and shift their entire portfolio into ultra-conservative investments. Others chase returns and stay too aggressive. Neither extreme is ideal.
A smarter approach: Align your investments with time horizons. Keep short-term spending money safe, but allow longer-term assets room to grow. This balance reduces risk while protecting purchasing power.
Mistake #4: Planning Without Real Numbers
Many people enter retirement with rough estimates: “I think I need X amount per month.” But guesswork leads to anxiety.
Instead, build a real plan. Map out cash flow, taxes, healthcare, and future needs. A detailed plan not only identifies potential gaps—it gives you permission to enjoy what you’ve worked so hard to build.
Mistake #5: Underestimating the Power of Small Tweaks
You don’t need to overhaul everything to get better results. Often, fixing just one or two retirement mistakes—like adjusting your withdrawal order or rethinking your tax plan—can dramatically improve both your finances and peace of mind.
Final Thoughts
You’ve spent decades preparing for retirement. Don’t let a few avoidable retirement mistakes steal your confidence now. With just a few intentional tweaks, you can fix 95% of the common issues retirees face—and enjoy the freedom you’ve earned.
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This does not constitute an investment recommendation. Investing involves risk. Past performance is no guarantee of future results. Consult your financial advisor for what is appropriate for you. Disclosures: https://onedegreeadvisors.com/solutions/#disclosures