{"id":1325,"date":"2025-04-19T02:27:39","date_gmt":"2025-04-19T02:27:39","guid":{"rendered":"https:\/\/staging8.dynaserverx.com\/newenglandtrust.com\/?post_type=newsletter&p=1325"},"modified":"2025-04-19T02:27:39","modified_gmt":"2025-04-19T02:27:39","slug":"watch-for-these-hazards-on-the-road-to-retirement","status":"publish","type":"newsletter","link":"https:\/\/staging8.dynaserverx.com\/newenglandtrust.com\/newsletter\/watch-for-these-hazards-on-the-road-to-retirement\/","title":{"rendered":"Watch for These Hazards on the Road to Retirement"},"content":{"rendered":"

Traveling aimlessly<\/h2>\n

Embarking on an adventure without a destination can be exciting, but not when it comes to retirement. Before starting any investing journey, the first step is setting a realistic goal. You\u2019ll need to consider a number of factors \u2014 your desired lifestyle, salary\/income, health, future Social Security benefits, any traditional pension benefits you or your spouse may be entitled to, and others. Examining your personal situation both now and in the future will help you home in on a target.<\/p>\n

While some people prefer to establish a lump-sum goal amount \u2014 for example, $1 million or more \u2014 others find a large number daunting. Another option is to focus on how much you might need on a monthly basis during retirement. Regardless of the approach taken, be sure to factor in inflation, which can place unexpected curves in your path.<\/p>\n

Investing too aggressively…<\/h2>\n

You may also encounter potholes when trying to target an appropriate rate of return. Retirement investors aiming for the highest possible returns might want to overweight their portfolio in the most aggressive \u2014 and risky \u2014 investments available. Although it\u2019s generally wise to invest at least some of a retirement portfolio in higher-risk investments to help outpace inflation, the proportion and individual investment selections should be determined strategically. Investments seeking to achieve higher returns involve a higher degree of risk. Appropriate decisions will reflect your goal, your investment time horizon, and your general ability to withstand volatility.<\/p>\n

…Or too conservatively<\/h2>\n

On the other hand, if you\u2019re afraid of losing any money at all, you might favor the most conservative investments, which strive to protect principal. Yet investing too conservatively can also be risky. If your portfolio does not earn enough, you may fall short of your goal and end up with a far different retirement lifestyle than you originally imagined.<\/p>\n

All investing involves risk, including the possible loss of principal, and there is no guarantee that any investment strategy will be successful.<\/p>\n

Giving in to temptation<\/h2>\n

Most people experience an unplanned detour on the road to retirement \u2014 the need for a new car, an unexpected home repair, an unforeseen medical expense, or the opportunity to take a long, exotic vacation.<\/p>\n

During these times, your retirement portfolio may loom as a potential source of funding. But think twice before tapping these assets, particularly if the money is in a tax-deferred account such as an employer-sponsored plan or IRA. Consider that:<\/p>\n