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The 10 Biggest Retirement Mistakes

1)      Having Too Much Money at Risk

2)      Not contributing to your retirement account soon enough, and not contributing each year as much as possible -
          Preferably a Roth IRA or other Tax-Free asset.

3)      Taking Social Security too soon or leaving your job early. Not maximizing your Social Security benefits.
          For Example: Assume Full Retirement Age benefit =  $2000. PIA benefit taken early at age 62= $1500,
          and if you wait until at age 70= $2640.
          That is an $1140 dollar difference every month + COLA for the rest of your life, and then your spouse’s life.

4)      RMD mistakes (based on age & account balance) you must take each yr. after 70 1/2

·         Penalty for not taking …..50% penalty + the tax

·         Special rules for Spousal beneficiary & Inherited IRA’s

·         Roth IRA – No RMD’s except when inherited!

·         Use age 70 as your tax year if your birthday is Jan 1 - June 30

·         Use age 71 as your tax year if your birthday is Jul 1 – Dec 31

5)      Making the wrong rollover move

·         Trustee – Trustee transfers unlimited times a year.

·         60 Day Rollover only 1 in 365 day period for all accounts!! Must rollover whole amount!
          If tax was taken out , you must replace the tax amount taken!!

6)      Scams – Organizations prey on seniors

·         Gold & gold coins & other precious metals

·         Investments too good to be true probably are!

7)      Not planning for future Taxes! Do you think taxes will be the same or higher in the future? Leverage
          tax laws to your favor NOW! Convert forever tax money to NEVER tax money NOW!

8)      Working with the wrong advisors. They must be distribution experts and have specialized training in that area.
          Most critical time in your life.

9)      Not Getting a 2nd opinion from another Advisor!  please see "Why you should get a second opinion" for more information 

10)    Not updating your beneficiary forms! Your beneficiary form trumps everything including divorce papers,
          wills & revocable living trusts. You must keep them updated and keep records of latest update.

Koch Insurance Brokers, LLC
            336 Anvil Dr. | Douglassville, PA 19518 | Ph. 610.370.7268


This firm only conducts business in states where it is properly registered or is excluded from registration requirements. The firm is not engaged in the practice of law or accounting. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice.

Information presented is believed to be current. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. All investments have the potential for profit or loss. Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio.