5 Worst Investment Mistakes Boomers Could Possibly Make

Being rich is one thing. Staying rich is another.

Despite the wealth of money that may be flowing into your account due to your job or the like, one should never forget about retirement. However, despite how wealthy you may be, there is always a possibility to come up short with your retirement goals.

Saving and investing is definitely a smart choice. Yet, how can you do so in the right way?

Well below are a few investing mistakes that boomers should avoid!

#1. Failing To Take Risks

Of course saving up for retirement is essential; however, the taking of risks can be promising too. This does not mean you should start walking on the path of ‘biting off more than you can chew’. Be it small risks or otherwise, taking risks may not only add to your pockets and eventual satisfaction but also grooms you.

Baby boomers tend to fear the taking of risks as some may think that they will lose their hard-earned earnings. But what if it turns out otherwise?

#2. Being Restrictive In Asset Allocation

Asset allocation is definitely one way in getting returns on your money. However, most boomers are too tightfisted when it comes to asset allocation, believing that they cannot risk losing money saved up for retirement.

The possible result in not allocating assets is the fact that those assets will run down gradually and will outdo the growth of investments.

To avoid this, increase the stock allocation in a portfolio and be willing to take out insurance on those stocks. Then you can spend.

#3. Allowing Fear To Drive Investment Decisions

The worst mistake that a baby boomer could possibly make is letting fear drive your investment decisions.

Watching the markets can be discouraging as there is hardly any stability at any given point.

Whether you are 50 or 60, or less than, you have still got years to live, do not be too quick to sell out because of the fluctuations in the market. Be sure to keep at least 50 percent of your investments in stock index funds.

#4. Neglecting Longer Life Expectancy

Rewind to the days of our parents and grandparents, retiring then was different. Employers will give most if not all of their employees, pensions.

Today, it’s quite different. Although some employees still maintain the previous norm, saving up for retirement has become responsibility laid only on those retiring themselves.

Longer life expectancy should be considered when contemplating an investment strategy. Basically, your investments or stocks should be able to cover the years remaining that you’ve got to live.

#5. Lack Of Retirement Income Plan

Working boomers are aware of the need to save up for the rainy day, get enough to cover their retirement livelihood.

The question is… What happens when retirement kicks in?

An essential aspect of having a successful retirement plan, is having a withdrawal strategy in place to furnish your lifestyle.

To be able to survive retirement, it is important to have some cash at hand and the rest as investments stock up somewhere. This way, you will just have to withdraw from the available cash and not have to tap into your investments.

Avoiding these risks as a boomer will aid in the successful enjoyment of your retirement.