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4 Myths That Can Ruin Retirement

Retirement is a crucial point in life. That is why planning for such thing where money is involved should not just be based on myths.

Now that you’re in your 40s or 50s, it might be time for you to enter the retirement savings game. However, if you’re late to do so, then maybe consider reexamining some of your beliefs.

Retirement saving and investing are alike. It’s easy to get misled by myths that seem realistic and believing in them can ruin retirement once it’s done.


If such thing happens, then maybe it’s time to actually grow up and stop relying in those retirement strategy beliefs.  Here are 4 myths that could ruin your retirement.

  1. Investment choice is more important than the amount of investment

Many believed that what you chose to invest in, such as stocks, bonds, and mutual funds is more important than the amount you’ve invested.

Investment choices are indeed vital, but how much money was invested holds the biggest impact for a successful retirement.

A diversified portfolio and a tailored asset allocation are not going to make a difference if you’re short on savings. Even the finest investment will not pave the way for a rewarding retirement if you don’t have enough cash.      

  1. Do not put retirement funds in stocks since they lose value

Indeed stocks tend to lose money, but they’re also able to provide the most growth potential over the long term.

Keeping all your investments in cash is not entirely a good idea since it won’t be able to level with inflation. Stocks long-term growth capability is necessary to keep up with inflation and to guarantee that your savings last throughout retirement.  

Individuals can now decide about their own asset allocation when they’re retiring. Allocating at least some of your retirement money to a diversified stock can be a good idea to maintain investment growth in those golden years.  

  1. Less expenses when retired

This is a popular myth about having around 70 to 90 percent of pre-retirement income to keep the lifestyle.

To some, this is probably true, but it could also leave you with less money. In fact, it is likely that expenses will grow more in retirement years.

Actual retirement expenses could cost more, depending on factors, such as healthcare, hobbies, and life span. Do not fully rely on this kind of advice especially when planning something so important such as retirement.

  1. Better to have more IRA accounts

It’s good to have more retirement assets, but more accounts? Not so much.

Consider combining individual retirement accounts (IRA) accounts into one as this can make account management easier in lots of ways.

A single IRA account will only need one statement and one beneficiary title. It is also easier to monitor asset allocation and rebalance a portfolio in case it lost track of its target.


Don’t easily fall for retirement myths. Planning for this type of thing requires thorough research, along with a qualified financial advisor. Saving has to be top priority and must not be overlooked as you will be in charge for funding your own retirement.

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