As you approach retirement, it’s important to make sure all your ducks are in a row. Here are 5 mistakes to avoid when approaching retirement.

1. Taking Too Much Risk

As you approach retirement, market corrections can have a big impact on the success of your retirement. If you plan on making a big purchase, did I hear RV, and the market corrects, you’d better be sure that your plan can support it. It’s also a good to have any short term goal money in less volatile investments.

2. Having a Concentrated Position

Employees with stock options often have concentrated positions in company stock. As a client of mine that worked for a large company in her town put it, the real estate, their investments, their employment, and many of things were tied to the success of this business. If you’re close to retirement, it’s a good idea to diversify.

3. Not Having A Plan

Sometimes we work so hard, and save so much that we’ve really not taken a breath, nor the time to see how far we’ve come. Saving as much as possible is a good plan. But you can make it better. Save with purpose and intent. As you approach your retirement date, well, at least 5 years earlier, have someone without a stake in your investments put together a plan to make sure you’re on track. I’d go to to find an advisor.

4. Paying Too Much for Advice

If you’ve work hard saving your money, the last thing you want is for someone to “sell” you a product that has HUGE commission up front, especially if it’s not in your best interest. You’ll want to know how much you’re playing for advice. Check out my article Hidden Fees in Investing for where to look.

5. Ignoring Taxes

Taxes can bite you in the bottom if you’re not careful. But they can also prolong your plan with some good tax planning. Take advantage of zero capital gains and Roth conversions with lower tax brackets. This will make your nest egg last longer.


As you approach retirement, it’s best to not make mistakes with your money. This means reviewing your risks, including concentrated stock positions, diversifying, having a plan, watch your advisor expenses, and tax planning.

Rich Feight, CFP
Rich Feight, CFP

Hi, I'm Rich Feight I'm a fee-only Certified Financial Planner, successful business owner, and self-made millionaire that knows how to beat the system and become wealthy. I have a lot of clients that have done it too. I'm also pretty good at finding that ever-elusive work/life balance so many of us strive for. Lucky for you I have an abundant mindset and give all my knowledge away on my blog. So if you want to know what it takes to become a millionaire, follow me.