The 7 deadly sins of retirement planning
Deadly sin of retirement planning: Lust
Make sure your retirement planning goals are realistic. Don't lust for what you can't have or can't achieve since you might put too much at risk in the effort to get it.
Say you currently have $1 million in your 401(k). If you tell your financial planner you want $5 million in three years so you can retire, "you're lusting after an unrealistic objective," says Warren.
"Investing is not wishing for something you don't have," he says. "Realistically, retirement planning would be achieving realistic goals."
Rafal agrees: "Lusting after a specific number could mean overexposing yourself to risk and jeopardizing your entire retirement future in trying to achieve that specific number," he says. "Instead, create a retirement plan based on your income needs for the golden years."