There is no shortage of advice offered to those approaching and planning for retirement: how to invest, where to live, what insurance to buy. Despite this abundance of guidance, many people are not preparing in a way that will maximize their chances of a comfortable retirement. Here are five mistakes that should be avoided, and can be, with thoughtful planning.
Failing to save on a tax-deferred basis
Numerous provisions of the Internal Revenue Code permit individuals to save for retirement on a tax-deferred basis. This kind of saving reduces income tax liability now and permits a larger amount to be put to work, with taxation occurring, in most cases, when funds are distributed in later years. But those who do not save as much as they are permitted are throwing away a valuable benefit. There are three ways this might occur:
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