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Check Your Ego at the Retirement Planning Door

In an article on GoBankingRates.com, Gina Horkey outlines ways in which your ego may be undermining your retirement goals.

She highlights ways in which we could sabotaging our retirement plan, including:

  • Unrealistic Expectations—Statistics show that you should lower your expectations and save more aggressively. According to a survey conducted by the Insured Retirement Institute, only 27% of baby boomers are confident that they will have enough money to last through their retirement (which is down from 33% a year ago).
  • Fear of Diversification—As you head towards retirement, it’s important to strike a balance between low-risk investments and stocks vehicles such as index funds and exchange-traded funds (ETFs). A 2015 report from Fidelity Investments showed that baby boomers may be keeping too much of their assets in the stock market. The reports showed that 10% of people ages 55 to 59 have all of their 401(k) assets in stocks. The key is to find adequate returns along with favorable expense and fee structures.

To help our members stay on the right path towards their retirement goals, AAII has published numerous articles, including:

If you are not an AAII member and want to become an effective manager of your investments to achieve your retirement goals, simply take a risk-free 30-day Trial AAII Membership and AAII’s informative content and all of our other membership benefits will be available to you.

 

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