Retirement Savings Mistakes to Avoid

A long-term savings strategy like planning for retirement relies on small steps taken over an extended period of time. Make sure you’re on track by avoiding these common mistakes.

Underfunding Retirement Accounts
Are you among the 71 percent of Americans who aren’t putting enough away for retirement? The most effective determining factors of a well-funded retirement are how early you start and how much you save. Aim to contribute the maximum amount allowable into your retirement accounts each year. If that’s a stretch, commit to increasing contributions to retirement accounts any time your income climbs, whether it’s from annual raises or salary boosts when you change jobs.

Ignoring Tax Ramifications
If you’re early in your wealth-building journey or you anticipate a lower-than-usual income this year, it may be worthwhile to take advantage of your lower tax rate and make Roth contributions in your retirement accounts. Just make sure your employer-sponsored retirement plan has a Roth option. If your income disqualifies you from making Roth IRA contributions, consider Roth conversions.

Concentrating Your Investments Too Narrowly
Many Americans who held most of their funds in a single company or sector of stocks learned this harsh lesson during the dot-com bubble. When the bubble burst between 1999 and 2001, so did a portion of those portfolios. And the same concern goes for tying up the bulk of your wealth in your principal residence. Not only is it time-consuming and costly to convert a home to cash, but you’ll also have the added stress of finding a new place to live. Diversification is key to avoiding this mistake.

Whether retirement is a few decades away or just around the corner, the goal is to make steady progress in the right direction as you prepare for life after work.

David Kern is a Wealth Management Advisor at Wealthquest – a Cincinnati based financial planning and wealth management firm that offers a full range of financial services under one roof, for one simple fee.

Subscribe to our blog, podcast and video library.

We promise to never share your information.

Share this post with your friends

Share on facebook
Share on twitter
Share on linkedin

Invest In Your Life. We’ll Do The Rest.

Discover a new approach to wealth management where your investments, tax preparation, and estate planning services are offered by one team of fiduciary experts, all under one roof, for one simple fee. Wealthquest is a fee-only financial planning and wealth management firm focused on the integration of your life and finances. Regardless of your account size or stage of life, our firm can help.

Cincinnati

50 E-Business Way
Suite 120
Cincinnati, OH 45241

T: 513.530.9700
F: 513.530.9776
info@wqcorp.com

Mon – Thur 8AM – 5PM
Friday 8AM – 12PM
Sat – Sun Closed

MAP

Chicago

2211 York Rd
Suite 210
Oak Brook, IL 60523

T: 630.581.3580
F: 513.530.9776
info@wqcorp.com

Mon – Thur 8AM – 5PM
Friday 8AM – 12PM
Sat – Sun Closed

MAP

Scroll to Top

Building your rich life starts with a simple conversation.

Please fill out this form and a Wealthquest Advisor will be in touch with you soon.

Not a fan of forms? We totally get it.

Give us a call or shoot us an email anytime.

Cincinnati

Tel: 513.530.9700
Fax: 513.530.9776
info@wqcorp.com

Chicago

T: 630.581.3580
F: 513.530.9776
info@wqcorp.com