During retirement, it is more important than ever to make sure that you have a healthy amount of savings. After all, the definition of retirement is that you are no longer working, and you need to live on your investments and social security benefits. According to The Motley Fool, studies have shown that one out of three Americans only have $5,000 in retirement savings, and 21% have absolutely nothing. This is a significant portion of the US population that is hoping to only live on their benefits. If you want to prevent yourself from becoming part of that statistic, read on to see the 40 biggest financial mistakes most retirees make.
40. Making Risky Investments
If you have the entrepreneurial spirit, it is all too easy to make risky investments in your 20s and 30s. Sometimes, these risks pay off in a big way. When they are done correctly, they will be able to help you make a lot of money. However, the closer you get to retirement, the more detrimental a failed risk may be to your livelihood. Instead of putting your money into high-risk pursuits you may want to consider having secure Investments once you get older. For example, instead of putting your money into a brand new start up that needs an angel investor, you may want to start putting your money into mutual funds that are guaranteed to pay you interest every year. Many people are able to live off of the interest from a mutual fund so long as you save during the course of your lifetime.