Three Mistakes Denver Area Investors Often Make When Planning for Retirement
Posted by managementfirmsdenve, 02/14/2018 7:41 am
Just about every working adult in the Denver area today dreams of retiring to enjoy financial security and leisure time. Unfortunately, a great many end up falling short of such goals, and that can make the later years of life less pleasant than they ought to be.
By working with an experienced Financial advisor Denver, residents can count on improving their chances. Denver wealth management experts are ready to help locals avoid all the usual mistakes and develop sound strategies for retirement saving and investing.
A Few Common Missteps Account for Many Retirement-Related Financial Problems
In fact, simply being aware of the most common problems and how to avoid them can go a long way toward ensuring a more secure retirement. Some of the issues that most commonly plague Denver residents who are focused on saving for retirement include:
Borrowing against retirement accounts. Just about everyone will occasionally end up in a situation where access to more cash could be helpful. When such needs arise, too many people in the Denver area look to their existing retirement savings for relief. While the terms of a loan issued against the balance in a 401(k) or IRA could seem fairly reasonable, any kind of problem that develops thereafter will inevitably be costly. Especially once the fees and penalties associated with early withdrawal are taken into account, being forced to liquidate part of a retirement account to repay a loan will always be unproductive.
Credit card debt. There are other kinds of debt that are every bit as dangerous with regard to their impact on retirement investing, too. Many credit cards today carry double-digit annual interest rates on balances, and that always adds up. With the markets typically producing significantly lower returns in even reasonably positive years, paying interest on a revolving balance will always work against retirement investment goals.
Short-term thinking. Finally, many investors also end up succumbing to overly limited views of the time horizons involved with retirement saving. Selling a particular stock after it drops a bit can consume the gains that were painstakingly accumulated over the course of several years. In most cases, investors will do well to maintain more disciplined, impassive perspectives on market movements.
The Advice and Support Every Investor Needs
Fortunately, there are financial experts in the Denver area who are ready to help their clients avoid mistakes like these and others. Working with such a professional often turns out to be the best way to get on track for a secure, enjoyable retirement.