How not to destroy your retirement portfolio
Don't focus only on the size of your account
Of course it is nice to end up at retirement with a sizable nest egg, but it would be a mistake to think the work is over when you get there. You still have to figure out how to make that nest egg last for up to three decades or longer since you don't know how long you are going to live.
Products that allow you to convert wealth into guaranteed lifelong income -- such as life annuities -- may be a good way to provide true income security during retirement.
"Psychologically, however, it can be difficult to get out of the bad habit of defining your retirement preparedness based on how much money is in your 401(k)," says Brown. "Our research has shown that if people frame their retirement problem in terms of how much they want to spend each month in retirement, annuities look extremely attractive. But when the issue gets framed in terms of the size of one's account balance, people will often mistakenly view annuities as risky."
Achieving retirement success
Whether your retirement plans involve a part-time job or full-time leisure, be sure to think through the details to ensure your dreams come true.