1.
Investing Mistakes To Avoid Before Retirement
Alpesh Patel OBE

2.
Common Investment
Mistakes
To Avoid
Planning for a better retirement through
stock investments is a great idea
There are plenty of mistakes you need to
avoid throughout your 30s, 40s, 50s, and
even in your 60's
This article will look at the most common
investment retirement mistakes people make
and show you how to avoid them

3.
#1. Home Country Bias
The makeup of your portfolio is
essential. But it would help if you
weighed it towards specific types of
stocks to make its payout. The U.S.
stock market has been particularly
fruitful over the last few years
According to research from the
investment giant Vanguard, 81% of
their investor's portfolios are U.S.
stocks. However, according to other
research from MSCI, the stock market
financial data providers, the U.S. MSCI
market has beaten the ex-U.S. MSCI
market by about 52% over the last
few decades.
This home-country bias suggests a
mix of around 50/50 home and
foreign stocks would be optimal.

4.
#2. Sequence of
Returns Risk
ANY RETIREMENT FUND PORTFOLIO MUST BE RESILIENT
AND CONTAIN A MIX OF STOCKS THAT CAN FARE WELL
EVEN WHEN THE MARKET IS UNPREDICTABLE
THERE ARE WAYS TO MITIGATE THE SEQUENCE OF
RETURNS RISK
MANY PEOPLE PLAN TO USE THE MONEY THEY'VE INVESTED
IN THE MARKET AS A SOURCE OF INCOME FOR RETIREMENT

5.
#3. Overconfidence in
the Current Market
THE MARKET HAS BEEN ON A BULL RUN FOR
OVER A DECADE
MANY INVESTORS HAVE MADE SIGNIFICANT
AND CONSISTENT GAINS, EVEN IN
SOMEWHAT RISKY STOCKS
IF YOUR RETIREMENT PLAN IS BASED ON
RISKY STOCKS CONTINUOUSLY PRODUCING
HIGH RETURNS, IT'S TIME TO STAND BACK
AND DO A LITTLE INTROSPECTION

6.
#4. Defining an Accurate
Retirement Budget
Your retirement budget will influence
what type of risk and returns your
portfolio can generate
So make a reasonable retirement
budget
A well-thought-out retirement budget
consists of two essential steps

7.
Step 1
Calculate your essential expenses
These fixed outgoings are things like your
household bills, taxes, insurance, and food
Additionally, budget for any medical costs
you might incur

8.
Step 2
These will be things like holidays, subscriptions and
memberships, meals, and other entertainment
These will be things like holidays, subscriptions and
memberships, meals, and other entertainment
A lot of this depends on how you plan to enjoy your
retirement
A lot of this depends on how you plan to enjoy your
retirement
Once you understand both columns of expense,
you'll have a better idea of what the best
investment strategy looks like
Once you understand both columns of expense,
you'll have a better idea of what the best
investment strategy looks like

9.
#5. Not Accounting For
Taxes
Retirement plan
withdrawals and Social
Security benefits can be
taxable depending on
your total income
To avoid a scenario
where your payments are
less than you budgeted
for, seek the advice of an
account or financial
advisor
One option is to move
some of your savings into
a Roth account

10.
Summary
There are lots of pitfalls you can face when planning your
retirement
But a diversified portfolio with an acceptable amount of risk is
a good start
Setting an accurate budget and accounting for the taxes you'll
need to pay will also help you avoid any nasty surprises

11.
References:
https://www.kiplinger.com/retirement/603563/4-big-retirement-blunders-and-how-to-avoid-them
https://www.marketwatch.com/story/3-retirement-mistakes-to-avoid-and-how-to-fix-them-if-you-can-11633002008
https://lexch.com/business/investment/personal-finance/3-stock-market-crash-mistakes-you-cant-afford-to-
make/article_17f3931d-0876-5579-b6c7-112e90dba137.html
https://www.hl.co.uk/news/articles/financial-advisers-top-3-retirement-income-mistakes-to-avoid
https://www.kiplinger.com/investing/603458/these-2-emotional-biases-could-kill-your-retirement
https://www.marketwatch.com/story/the-no-1-investment-mistake-retirement-savers-are-making-vanguard-study-11607365577
https://www.cnbc.com/2021/08/13/avoid-these-mistakes-with-your-emergency-savings-account-.html
https://www.kiplinger.com/retirement/retirement-planning/603135/3-retirement-mistakes-you-may-be-making-right-now
https://www.fool.com/retirement/2021/06/20/3-common-retirement-planning-mistakes-and-how-to-f/
https://www.cnbc.com/select/biggest-investing-mistakes/
https://www.cnbc.com/2020/09/28/6-retirement-planning-mistakes-to-avoid-when-you-are-in-your-60s-.html
https://www.bloomberg.com/opinion/articles/2021-05-14/retirement-savings-may-not-go-as-far-as-you-think
https://www.hl.co.uk/news/articles/4-unexpected-reasons-your-retirement-income-could-fall-short,-and-what-to-do-about-it
https://www.forbes.com/sites/kelliclick/2021/05/19/5-common-retirement-planning-mistakes---and-how-to-avoid-them/
https://www.kiplinger.com/retirement/retirement-planning/602530/6-retirement-killers-to-avoid-at-all-costs
https://www.marketwatch.com/story/these-boomers-just-made-massive-retirement-mistakes-dont-be-one-of-them-2020-08-03
https://www.forbes.com/sites/stevevernon/2020/10/14/when-investing-during-retirement-dont-make-this-mistake/

12.
www.campaignforamillion.com