Common Retirement Planning Mistakes

Posted on: in [ Retirement ]

Your retirement is supposed to be about relaxing and doing things you haven’t had the time to do; it’s supposed to be a great closing chapter to your life. So why does something so positive cause you such anxiety?

 

Most often, the cause of stress and insecurity toward retirement boils down to two things: fear of outliving money and fear that you haven’t done enough to save at this point in your life. Knowing the mistakes we’re making is the first step in correcting them. State Bank has put together this short list of common mistakes we see when it comes to retirement.

 

  1. Waiting even longer than you already have- as the saying goes, “The best time to plant a tree was yesterday, the next best day is today.” Waiting even longer to save for your retirement only decreases the amount of time you are allowing compound interest to work its magic on your money. Even $100 a month can grow to large amounts over time, so start making contributions to a retirement account today.
  2. Saving with no goal in mind- in sports there are baskets, end zones and goals; they give the players a purpose to what they are doing. The same can be said for your retirement savings. You need to know when you would like to retire, how much you want to have saved and what you’ll need to save every month to get there. Without goals, you’re blindly saving money and hoping you come out with enough.
  3. Not making your contributions automatic- there are few things harder than parting with your hard earned money when it’s not getting you immediate gratification. By making your contributions automatic -- whether through an employer-sponsored 401(k) or an automatic transfer from your checking account -- it makes saving for retirement much easier than writing out a check for every contribution.
  4. Missing out on “free money”- employer-sponsored 401(k)s are good, but plans that include a company match are even better. Your employer is essentially giving you “free money” for making contributions to your retirement. That’s money that you need to be taking advantage of if you aren’t.

 

Saving for retirement doesn’t have to be difficult, and you don’t have to do it alone. State Bank offers investment services and financial planning to help you identify your goals and how to best save your money. Get in touch with us today to learn more!

 

State Bank, member FDIC

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