When it comes to planning for your retirement, there are a lot of ways to do so. In today’s society, planning for your future retirement can be somewhat easy when the correct steps are taken. However, with so many different ways to save comes many different ways to lose your retirement fund. In a recent article written by Alan Gula, a Chief income Analyst for Wall Street Daily, losing money can be avoided when individuals who are saving for retirement attempt to avoid certain “landmines”.
- No Diversification- When we hear stories of individuals losing a large amount of money from their retirement fund, we typically find that they were not diversified when saving. Those who place their savings in one sole place are at a higher risk of losing a more significant amount of money as opposed to those who are well diversified when it comes to their retirement savings.
- Fees- As Mr. Gula points out in his article, a large amount of brokers are usually given incentives to try and sell products that are high-commissioned, which means high fees for you. Mr. Gula gives a website called Morningstar that shows individuals the risk to reward ratio of products and mutual funds to show them if they should risk purchasing from a certain broker.
- REITs- If a broker makes an attempt to sell you on a non-traded real estate investment trust (REIT) you should say no and run the other way. Brokers try to sell REITs by saying they help you to escape the volatility present in the markets. However, these non-traded REITs prevent you from pulling your money if necessary, which could end up as a loss for you in the end.
For the full article written by Alan Gula, click here.
If you want to avoid casualties like those listed previously, or want to know more about other possible pitfalls when saving for your retirement, talk to an advisor from Safe Retirement Solutions today. Our advisors understand how stressful and complicated saving for your retirement can be and will work with you to make the process as stress-free as possible.
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