You can make a lot of mistakes in your youth … and assuming none of them get you killed or put in prison, you can generally recover from them. Time is on your side. But the closer you get to retirement, the less room for error you have.
As your nest egg gets larger, investing mistakes cost you a lot more. Think about it. If you lose 30% on a $10,000 portfolio, you’re out $3,000. That might be a single after-tax paycheck when you’re young. But imagine losing 30% on a $1 million portfolio. That’s $300,000. For most Americans, that represents years of income in the prime earnings years of your career.
Investing mistakes like that might make the difference between a comfortable retirement and working until the grave.
Today, we’re going to look at five potential retirement mistakes that can dramatically affect your lifestyle. Some will be more relevant to younger investors and others to older investors. But all can potentially torpedo your retirement.