I no longer think that I'll be able to achieve retirement with this company. Either way, it might be helpful if someone with experience shared tips on how to avoid the worst retirement mistakes.
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I think @1vdk nailed it. Especially regarding 60/40 portfolio is dead. Those whom will retire well and minimize volatility will not be the 60/40 portfolio, but rather be diversified in stocks, REITs, secured 1st lien loan funds l, and hedge funds that are starting to emerge for retail investors, and also keep and have 3-5 years cash on hand to fund base living expenses. The world has changed and traditional portfolio allocations on age based stock / bond fund allocations will be the worst retirement mistake you could ever make. Read JP Morgan’s annual long term capital market outlook and you may see the issues that are emerging and maybe you can avoid the problems of using history to bias your portfolio.
Debt and Divorce and D-mb
- Save as much as you can now and take advantage of catch up contributions
- Attend some of the financial seminars offered by a few well respected companies that work with XOM retirees and decide if you want to manage the money on your own or use some outside expertise. I chose a hybrid because tax optimization is a blind spot for me
- Build a diversified portfolio ... and the 60/40 model is dead. Ensure high dividend stocks are a core part of your portfolio
- Keep 1-2 years in cash
- Watch your spending
Not retirement specific: Don’t believe you are entitled to a splurge purchase, without first checking you can afford it. Especially if you are withdrawing investments in a down market. Be aware, and adjust.
Live within your means. Learn to put money to work to generate income (manage risk). Pray.
If you cannot control your spendings, take an annuity.
I knew a girl that retired with 30 years. She took the lump sum. She blew through it in no time by never turning her tv off the Home Shopping club channel. Her 3 bedroom apartment was over flowing with "stuff".
She ended up moving to another state after living with a friend since she couldn't afford rent etc. Now she lives on social security.
I had heard about shopping addictions. But never witnessed it.
Divorce :-D
If you don't think you will achieve, what is the point of your question?
Biggest retirement mistake: Getting too old before cashing in the chips.