3 Retirement Advice You’re Going to Regret

Retirement is that stage in life we all want to enjoy comfortably. Sadly, it is not all sweet and rosy for every one of us. A few maybe so lucky to live the retirement life of their dream, while many would probably still be working in their retirement age. Which is why, while there’s still time, look for opportunities to build your retirement income. Ask the experts for advice.

But, of course, you don’t need just any advice. You need good advice.  Bad advice can cause you more harm, especially when the opportunities to correct it are scant. So, be wary when a misinformed friend or colleagues advise you these:

Avoid the stock market. It is risky.


While a fixed income guarantees you consistent cash inflow, its return is simply not “meaty” enough to help you meet your income needs come retirement time. So, if possible, diversify your retirement portfolio, and invest equities.

Investing in equities gives you the opportunity to earn 6% to 7% or more.

It’s alright to skimp on your 401(k) in event of emergency.

If you want a comfortable retirement, never skimp on your 401(k) no matter the emergency. Yes, it just sits there. It is not doing anything. It is really boring. But, hey, just keep feeding it, and you’ll soon see the amazing power of compound interest. Not to mention, it is really not a good idea to withdraw money from your 401(k) to pay for everyday bills when money is tight. Doing so would cost you a 10% penalty and income tax.


All you need is an annuity.

You can use an annuity as part of your retirement strategy, but never completely depend on it to provide you a retirement income. Yes, annuity guarantees you a steady income stream by the time you retire, but that amount may not be enough to cover for all your expenses and needs.

In addition, an annuity should be in the far last of your retirement investment priorities. For one thing, you will have to pay for it—and it can get really expensive. So, if you are short on cash, better invest your money somewhere else.

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