Planning for retirement is hard enough. Don’t make it harder with poor financial decisions. Here are three that could haunt you forever in retirement.
First, resist the urge to put your children ahead of your retirement savings. Yes, you want the best for your kids. But if you’re devoting all of your money to private schools instead of your IRAs and 401(k)s, you may find yourself broke when retirement rolls around.
Second, embrace the stock market — even if its ups and downs scare the stuffing out of you. Since 1926, stocks have returned about 10% a year, on average. Bonds and CDs don’t come close. Gradually reduce your stock holdings as you move deeper into retirement.
Third, don’t kid yourself that you can work forever. You might get sick or you might get downsized. Who knows? If you’re counting on a steady paycheck when you’re 65, 70 or even 75, you’re counting on income that may never materialize.