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Make Sure You Avoid These 7 Deadly Sins Of Retirement Planning

April 10
10:10 2019

The lights have been green for the baby boomers all their lives.

They were born just after World War II, between 1946 and 1964, and raised during the biggest, most sustained economic boom in human history.

They were sent to college, and grad school, by their doting parents when it was still cheap — or nearly free.

And then, when they went out to work, they were able to accumulate stocks, bonds and real estate just as prices began to skyrocket. The Dow Jones Industrial Average was just 1,000 in the early 1980s, when most boomers were first entering the workplace.

So after all this good luck, where are they now?

A new study has the numbers. And they aren’t pretty.

“Boomer Expectations for Retirement,” a new annual study from the Insured Retirement Institute — a trade body for the annuity industry — makes shocking reading. Most boomers are unprepared for retirement, even as they approach it or enter it. Amazingly, barely one in 10 has enough saved up.

This is hardly the first study to report on Americans’ poor retirement savings. But the IRI survey stands out because it focuses specifically on boomers. They interviewed 804 people aged 56 to 72.

In a nutshell, based on their numbers, about 11% have at least $500,000 saved for their retirement. That’s hardly a king’s ransom, but it may have to do.

The remainder don’t even have that.

Nearly half don’t have any retirement savings at all. None.

Yikes. Good times ahead. About half of those who make it into their early 60s will live past 85. How they’re going to get by without savings is anyone’s guess.

OK, OK. Financial surveys about retirement planning are generally produced by organizations in the financial services industry, and naturally they have a point of view. The IRI represents annuity providers. And, yes, the survey results suggest that, all in all, more people really should buy annuities when they retire. Make of that what you will. But the study is useful all the same.

Among the benefits: It shows an astonishing seven “deadly sins” of retirement planning which have led so many to this dismal situation.

Here are seven things not to do when planning for your retirement.

Continue Reading at Market Watch

Photo: “Retirement” by 401(K) 2013 is licensed under CC BY-SA

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