The Top 10 Retirement Blunders to Avoid Right Now

If You Are 55-65, These Next Few Years Are the Most Important of Your Financial Life.

The decade before retirement -- what we call the Retirement Red Zone -- is when the biggest mistakes happen, and when they are hardest to recover from. Understanding what to avoid is just as important as knowing what to do.

This complimentary guide walks through the 10 most common and costly retirement planning mistakes we see, and what you can do to address each one before it becomes a problem.

• 01
  Claiming Social Security Too Early A permanently reduced benefit that can significantly affect your lifetime income -- and one of the most irreversible decisions you will make.
• 02
  Ignoring Required Minimum Distributions Missing RMDs from your retirement accounts triggers substantial IRS penalties and an unexpected tax bill that catches many retirees off guard.
• 03
  Underestimating Healthcare Costs Healthcare is one of the largest retirement expenses for most households -- and Medicare covers far less than most people expect.
• 04
  Carrying Debt into Retirement Debt silently drains your portfolio and limits your flexibility. Entering retirement with outstanding obligations is a risk that compounds over time.
• 05
  Failing to Account for Inflation A dollar today will have meaningfully less purchasing power 20 years from now. Portfolios not structured for inflation can fall short over a long retirement.
• 06
  Withdrawing Too Aggressively Too Soon Drawing down your portfolio too quickly early in retirement -- especially in a down market -- can create a sequence of events that is difficult to recover from.
• 07
  Neglecting Tax Planning in Retirement A portion of your Social Security benefit may be subject to income tax. A coordinated withdrawal strategy can help manage your tax exposure across all accounts.
• 08
  Having No Estate Plan -- or an Outdated One Without a current estate plan, the distribution of your assets may not reflect your wishes. This is one area where inaction carries real and lasting consequences.
• 09
  Too Little -- or Too Much -- Investment Risk Both extremes can derail a retirement that spans 20 to 30 years. Portfolio allocation needs to match your time horizon, income needs, and risk tolerance.
• 10
  Going It Alone Without a Coordinated Plan Retirement planning involves income, taxes, healthcare, investments, and estate planning working together. Without a coordinated strategy, the gaps are easy to miss and costly to address later.