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Retirement Planning
Top
Retirement Mistakes
By : Don Burrows , Jr . Hilltop Securities , Inc . don . Burrows @ hilltopsecurities . com
Over the next six months , we will be discussing the top retirement mistakes that people make . Today , we start with mistake number one :
Taking Advice From Friends , Family and Co-Workers : We all have family members , friends and colleagues that we love and respect . We appreciate their advice and support on challenges we may be dealing with . But , while they may have your best interest at heart when giving us investment advice , they likely do not know retirement investing strategies for your particular situation .
According to an AARP study , among respondents who seek advice from those other than financial advisors , the most common sources include a spouse ( 30 %), family members ( 25 %), and friends ( 21 %). 1And , a Money magazine article cited a few retirement plan statistics : 21 % of all 401 ( k ) participants rely on friends and family for advice about managing their plan accounts , as do 44 % of those under age 35 . This is concerning , especially for those who have significant assets inside their retirement plan , because taking advice from those who cannot offer professional advice has the potential to derail your retirement plan .
Another important point to consider when asking for advice from someone other than a skilled financial professional is that we all have different goals and time horizons . For example , a 35-year-old should not advise a 55-year-old about which mutual funds to invest in because they will both have different time frames . And a 70-year-old should not advise a 45-year-old , even if he is that individual ’ s father . That is a very significant reason not to rely on family and friends for advice . We each have different needs , different income , different assets , different risk tolerances . If you are in a situation where you don ’ t know what to say to the person giving you advice , all you have to say is , " I ' m going to take that into consideration . I ' m going to look into that fund , or I ' ll talk to my advisor about that .” Simply be gracious about your
If you are in a situation where you don ’ t know what to say to the person giving you advice , all you have to say is , " I ' m going to take that into consideration . I ' m going to look into that fund , or I ' ll talk to my advisor about that .” Simply be gracious about your response and let that person know you will take their advice into consideration . You don ’ t have to put your friendship at risk , or alienate a family member when you receive their advice . Just say “ thank you .” A true friend or loving family member won ’ t pressure you into taking a financial risk you aren ’ t comfortable with or keep bothering you with follow-up questions about any action you did or didn ’ t take .
Many times , people will ask friends , relatives and coworkers about investing because they simply don ' t know who else to ask . Or , they get bombarded by various advisors soliciting their business , or perhaps trying to sell them products , and they get frustrated and just ask their friend who ' s been working with them for twenty years . But you have options and various sources to turn to for advice that will help keep your retirement goals on track .
You can ' t afford to make mistakes when planning for your retirement , and you ' ll need to make every dollar count if you want your money to last throughout your retirement . Your job is to find a trusted and experienced financial advisory team who puts your interest first , who will help you determine your goals , and then help you choose the best investment strategies for your retirement .
This article was written and prepared by the Burrows Auttonberry & Agol Investment Group and S . LeBlanc & Company ( 760 . 929.134 ); email : sydney @ financialwriter360 . com . The Burrows Auttonberry & Agol Investment Group , which is a marketing name for a group of registered representatives within Hilltop Securities Inc ., a member of NYSE , FINRA , and SIPC and a registered broker dealer and registered investment
adviser that does not provide tax or legal advice , with headquarters at 1201 Elm Street , Suite 3500 , Dallas , TX 75270 , 214.859.1800 . Though information provided in this article was prepared by sources believed reliable , Hilltop Securities Inc . does not guarantee its accuracy or its completeness . This article is a paid advertisement for the Burrows Auttonberry & Agol Investment Group of Hilltop Securities Inc ., and may not be duplicated or redistributed without the prior consent of Hilltop Securities Inc . S . LeBlanc & Company is not affiliated with Hilltop Securities Inc .
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