#2: Investing Too Conservatively
Conservative investments like bonds and CDs are great for protecting principal, but they’re not the best tools for growing your retirement wealth. So you’ll want to lean toward aggressive investments like stocks when you’re young.
Financial planners recommend subtracting your age from 100 (to be conservative) and investing that percentage of your savings in stocks. For example, if you’re 28, you’d invest 72 percent in stocks and gradually invest more conservatively as time goes on. For a quick guide on how to invest by age, take a look at NerdWallet’s infographic.