What Financial Professionals See…

What Financial Professionals See…
16 Nov 2016

Financial professionals are not immune to making retirement mistakes. Occasionally their biases and experiences (and egos) can trickle over to the advice they give. We are all, at the end of the day, human.  However, in the context of what we see, here are the top 5 retirement mistakes financial professionals see from their clients:

1) Keeping your head in the sand

  • Denial (not the river in Egypt) can be a prominent obstacle. Not making a decision to focus on your retirement is actually a decision in of itself, just not a good one. The sooner you deal with the truth the better off you will be….

2) Being too optimistic-or pessimistic

  • Being overconfident and over fearful are both attributes of investors who can perform poorly. Not only poor returns on investments are possible but the unneeded stress created can make saving for retirement unbearable.

3) Poor diversification

  • As my Grandma used to say, “Don’t put all your eggs in one basket!’ Sounds pretty basic but you would not believe how many people we see with horrendous diversification or worse yet big bets on company stock in their 401K’s.  “Own a little of everything forever” one great investor said.

4) Forgetting about taxes

  • Remember that 401K balance you have is not all yours! Uncle Sam owns anywhere from 10%-30% depending on your retirement tax bracket

5) Assume you will be able to work for a long time.

  • A 2014 Gallop Poll found that working Americans expect to retire at age 66, but found the average age of retirees to be 62. Sooner than they expected. Health, layoffs and other issues seem to force people’s hands.


Look out for yourself and start as soon as you can! Good luck! Jeff


Jeffrey Johnston

Jeff has over 30 years of experience in the investment industry. He currently holds his FINRA Serices 6, 63, 66, 7, 24 & 51 licenses with LPL Financial as well as his health and life insurance licenses.