Investing too aggressively
Investors tend to take excessive risks to achieve their retirement goals, but doing this can have substantial adverse impacts. If you’re aggressively chasing for a 20% rate of return, that 20% rate of return can become 75%— loss. So be cautious!
Indeed, it is correct that failure can teach you great lessons, especially within the context of investing. However, when nearing retirement age, you cannot afford to lose your money in some sketchy investments.
While it’s true that experience is the best teacher, it is now too late for you to learn the hard way. Instead, you should carefully plan out your investments and strive to become aware as to what and how significant their risks are.
Not hiring for a financial expert
Due to the drastic technological advancement, acquiring information has never been easier. The internet paved the way for information to be passed quickly from point A to point B.
Back in the day, you must need to thoroughly search for the details of something that you don’t know. But today, the internet created the ‘know it all persons’.
People who are laying down in bed, holding a smartphone in their hand, and watching a 1 hour investing tutorial on Youtube think that they know it all after a couple of online videos.
When investing, especially if it’s for your retirement, you should be extra cautious not to take matters in your own hands.
Don’t tamper with something you don’t comprehend. It is like dabbling with an electric powerline to fix your electricity. Tampering it without sufficient knowledge would get you electrocuted at the end. So better hire an expert to do it for you.
In finance, this is the case too. Don’t be afraid to seek professional help.
Some people think that hiring a financial expert is a waste of money, not realizing that they can potentially lose regrettable of money if they don’t.
If your reason for not hiring an expert is—you cannot afford to hire one, I’ll refute that you also can’t afford to lose your money, especially in an investment for retirement.
Becoming attached in your investments
Most people nearing the age of retirement are fond of this one particular investing technique: the buy-and-hold until you die strategy.
Sometimes it is our emotional attachment to our investments that keep us away from growing financially. Do not fall in love with your investments. Understand when is the right time to let go and sell them.