4 Investing Errors That Can Crush Your Retirement Savings
If you're consistently saving a double-digit percentage of your income for retirement, then congratulations. You've taken a huge step toward ensuring that you'll have a comfortable retirement. However, it's only the first step; the next is to invest that money wisely so it will grow enough to support you when you're no longer working. If you're making any of these common investing errors, then you may come up short despite your diligent saving.
Yes, the stock market is a scary place. I still remember the gut-wrenching experience of checking my 401(k) balance after the stock market crash of late 2008. But if you have years or decades to go before retirement, even a crash of that magnitude is just a temporary setback. In the almost nine years since the 2008 crash, the market has come roaring back and then some. If you'd reacted to the crash by selling all your stocks, you'd have locked in major losses and missed the tremendous recovery period that the market has enjoyed ever since.
Despite the risks, stocks offer everyday investors the best long-term returns, and if you don't include them in your portfolio, then you will find it difficult -- or even impossible -- to save enough to finance your retirement.
Source: Fool.com