Mistakes to Avoid When Planning for Retirement

Darcy Bergen leverages over two decades of experience in the financial services industry to inform his role as the president and managing partner of Bergen Financial Group in Arizona. In this role, Darcy Bergen oversees the firm’s services to help clients navigate on matters related to insurance, wealth management, investments, and retirement.

Whether you have already built up a nest egg or are just starting to save, it is crucial to avoid the common mistakes that can sabotage your retirement journey. Below are three mistakes to avoid when planning for retirement:

1. Not paying off debt - Having too much debt can set you up to fall short in retirement or delay retirement altogether. Paying off debt in retirement also makes your financial choices limited. If you work to pay off as much as you can before retirement, the more disposable income you will have for preferred retirement activities.

2. Underestimating healthcare costs - When planning for retirement, it is important to take into account the increase in health insurance premiums and out-of-pocket costs that come with aging. Long-term care is another healthcare expense that is often ignored, but can be expensive in retirement. Plan ahead and set aside funds or secure insurance for your preferred type of extended care services such as assisted living and nursing home stays.

3. Failing to choose an investment strategy - The investment strategy must reflect your current and long term goals and not be based solely on market conditions. In this case, it is best to choose a diversified asset allocation strategy that considers how much risk you can tolerate in growing your investments to ensure your desired retirement income.

Investment advisory services offered through Horter Investment Management, LLC, a SEC-Registered Investment Advisor. Horter Investment Management does not provide legal or tax advice. Investment Advisor Representatives of Horter Investment Management may only conduct business with residents of the states and jurisdictions in which they are properly registered or exempt from registration requirements. Insurance and annuity products are sold separately through Bergen Financial Group. Securities transactions for Horter Investment Management clients are placed through E*TRADE Advisor Services, TD Ameritrade and Nationwide Advisory Solutions.