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Apr 2023
3 mins read
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5 Ways Your Retirement Plan Can Go Wrong

Retirement planning is an important financial goal, given its long term nature. There may come times when you lose focus. Knowing the ways you can go wrong with your retirement plan, will only help you avoid them.
1

Not including inflation while enumerating your retirement goal

The amount that may seem sufficient today, may not be sufficient after a decade or later depending on when you choose to retire. While enumerating your retirement requirement, it is important to consider the impact of inflation not only for corpus creation but also for the later years when you will effect withdrawals. 

point 1
2

Not starting your retirement plan early enough

When you just start out being financially independent, investments itself is a distant call. Retirement planning is not on your mind. However, it is important to start investing in your retirement early in life. The magic of compounding becomes more evident only over the long horizon. 

point 2
3

Abandoning or going astray from the investment plan

Consistency and discipline are the two cornerstones of investing. You must continue to stay motivated and driven to build the required corpus. This is one of the reasons for ascertaining the corpus. It is always easy to stay committed to your goal with a vision.  

point 3
4

Not increasing your investments periodically

Many individuals begin their investments with great enthusiasm. They forget that just like a yearly hike in their income, there has to be a yearly hike in the investments set aside for your goals. A goal like retirement planning which requires a sizeable corpus cannot be achieved without escalating the investment commitment periodically. 

point 4
5

Not monitoring, reviewing your portfolio

We get so busy in our mundane routine, that it never occurs to us that investments need our attention occasionally. Reviewing your portfolio and making tactical and strategic reallocations are critical for achieving better success on your investments. 

point 5

Be careful to avoid these common mistakes in your investment planning for retirement and achieve success!
References:
1.https://economictimes.indiatimes.com/wealth/plan/5-ways-you-can-go-wrong-with-your-retirement-planning/retirement-planning-5-ways-you-can-go-wrong-with-your-retirement-planning/slideshow/82793153.cms
2. https://www.investopedia.com/retirement/how-sabotage-your-retirement/

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