Could have, would have, and should have. Nobody likes to look back on anything with regrets - especially when it comes to saving for a comfortable life after work. The following are three potential retirement missteps and how to avoid them when it comes to retirement planning.
1. Not saving early and not saving enough
It's been drilled in our heads nearly all of our lives to save as much as we can for retirement and to start as early as possible. Saving for retirement when you're younger, means your savings will work harder for you over time, giving you decades of compound interest-earning power versus just a few years.
2. Not diversifying
This can be an off-putting word to some who simply wants to save more for retirement. But diversifying isn't just for people with a big bankroll and money to invest in the market. In fact, diversifying can benefit us regular folks by allowing our savings (401k's and other retirement savings accounts) to work harder and better temper the market's ups and downs. If you're unsure how to set up your retirement accounts for success on your own, consult with a qualified financial advisor who can help you spread your contributions across a broad array of savings vehicles according to your objectives and retirement goals.
3. Getting the right financial advice
If you're feeling overwhelmed about your retirement choices or feeling anxious as to whether or not you'll have enough retirement income to last you for the rest of your life, seek the help of a qualified financial advisor. Don't think that you need to have a large amount of assets to get the help you need. In fact, today, many advisors specialize in retirement planning and can help you with everything from identifying gaps in your retirement plan to reducing your taxable income in retirement.