Planning for retirement can feel overwhelming, especially when you’re juggling careers, raising kids, and managing everyday expenses. But avoiding common mistakes can make a meaningful difference in how far your retirement dollars go. Below are five pitfalls families often face—and steps you can take to help avoid them.
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1. Starting Too Late
Many families delay saving for retirement until they “have more room in the budget.” The reality is, life’s expenses rarely slow down. Waiting too long reduces the power of compounding, meaning you’ll need to save more later to catch up. Even small contributions made early can make a lasting impact over time.
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2. Not Having a Plan
It’s easy to focus on putting money into an IRA or 401(k) without asking bigger questions: How much will I need? What’s the right mix of investments for my goals and timeframe? Without a plan, it’s difficult to know if you’re on track—or if you’re under- or over-saving. A personalized financial plan can help you align today’s decisions with your future needs.
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3. Relying Too Heavily on One Account Type
Some families put all their retirement savings into a 401(k) through work, while others may only use a Roth IRA. The issue? Different accounts come with different tax treatment. Having a mix—pre-tax, Roth, and taxable accounts—can provide more flexibility when it comes time to withdraw funds in retirement.
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4. Cashing Out or Borrowing From Retirement Accounts
Life happens—job changes, emergencies, big expenses. But tapping into retirement savings early can lead to taxes, penalties, and reduced growth potential. Borrowing against retirement funds may seem like a quick fix but often creates long-term setbacks that are hard to recover from.
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5. Forgetting to Adjust Along the Way
Your family’s needs and goals will change over time, and your retirement plan should too. As kids grow, careers shift, or retirement gets closer, it’s important to revisit your savings strategy, adjust contributions, and rebalance your investments. Staying on autopilot without checking in can leave you exposed to unnecessary risk—or too conservative when you still have years to grow.
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Final Thoughts
Retirement planning doesn’t have to be complicated, but it does require attention and regular adjustments. By avoiding these five mistakes, families can create more flexibility and confidence in their financial future.
If you’d like to explore whether your family is on track—or identify areas that might need attention— check out my new retirement readiness checklist or consider reaching out for a conversation.
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