Two Crucial Retirement Mistakes to Avoid, Ep #68

<p>There are two crucial mistakes I see people make with their retirement. The sad part is that these mistakes are completely avoidable with proper retirement planning. What are the two retirement mistakes? How can you avoid making them? Learn more in this episode of the Retirement Made Easy podcast!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[4:33] Check out RetirementMadeEasyPodcast.com for free resources</li> <li>[5:14] Mistake #1: Don’t invest all your eggs in one basket</li> <li>[13:54] Mistake #2: Financially relying on your pension</li> </ul> <h2>Mistake #1: Don’t invest all your eggs in one basket</h2> <p>A lot of people in St. Louis work for Boeing and may own shares of their company stock. Many also feel a sense of loyalty to their employer/company and invest far more than they should in company stock. I have nothing against being a shareholder. However, when you bet the farm on one single stock, you may not have a good outcome. You need to weigh how much you invest in one company <em>very carefully</em>.</p> <p>I’ve known people who had thousands of shares of company stock in Worldcom, which went bankrupt. What happened to those shares? They’re worthless. Boeing started 2020 at $332 a share. It went to $95 a share during the COVID crisis. Many people owned company stock and had their retirement portfolios invested in Boeing. They didn’t know what to do. The moral of the story? <em>Diversify</em>. If you’re passionate about the company, it’s perfectly fine to own some shares. But limit it to 5–10% of your portfolio. </p> <h2>Safeguard your money with diversification</h2> <p>John Wooden was the UCLA Men’s Basketball Coach for 12 years. During 10 of those years, he won 10 championships. That will <em>never</em> be accomplished again. He and his then-fiance were saving for their wedding during the great depression. They finally reached the “magic” number where they could pay cash for their wedding. </p> <p>So they walked hand-in-hand to the bank to withdraw the mon