But as you approach the retirement “decision phase,” the stakes change. Retirement mistakes can cost real money.
Suddenly, the questions become more about withdrawal strategies, tax traps, and income coordination. The wrong decision means retirement mistakes that could cost you tens—or hundreds—of thousands of dollars over time.
This is the phase where many financially successful people begin to look for expert, fiduciary advice—not because they can’t do it themselves, but because they don’t want to risk a misstep they can’t undo.
Here are 7 Common Retirement Mistakes You Still Have Time to Avoid:
1. Claiming Social Security Too Early
For high earners, delaying to age 70 can be a powerful way to hedge longevity risk. But timing matters—especially for couples. Once you file, there’s no do-over.
2. Missing the Roth Conversion Window
If you retire before RMDs begin, those “gap years” can be ideal for converting portions of your IRA to a Roth at low tax brackets. Most miss this.
3. Ignoring Medicare Surcharges (IRMAA)
Take too much income in retirement and your Medicare premiums can spike—often unexpectedly. A coordinated withdrawal strategy can help you stay below costly thresholds.
4. Overlooking Tax Diversification
It’s not just about how much you have—it’s about where you hold it. A tax-smart withdrawal strategy from IRAs, Roths, and taxable accounts can lower your lifetime tax bill significantly.
5. Assuming the 4% Rule Applies to Everyone
A cookie-cutter withdrawal rule doesn’t account for market volatility, required minimum distributions, or variable spending needs. You need a plan built around your lifestyle, not a rule of thumb.
6. Holding Too Much Cash or Too Much Risk
Some investors stay too conservative for too long. Others don’t realize how exposed they are to sequence-of-return risk. Retirement often requires a recalibrated investment plan.
7. Thinking Estate Planning is Just for the Ultra-Wealthy
Without the right structure, your heirs could face unnecessary taxes or delays. The SECURE Act changed how IRAs are inherited—your current plan may be outdated.
Start with a checklist that covers the issues you need to consider BEFORE making decisions!
Everyone needs a roadmap. You might want to consider getting my monthly letter. When you subscribe, I’ll send you a pre-retirement checklist that outlines the issues you need to consider before making decisions.
Get your pre-retirement issues to consider checklist here!
Why Work with a Fiduciary Advisor?
A fiduciary financial advisor is legally obligated to put your interests first—unlike many brokers or salespeople at large institutions – and – (shameless self-promotion, I know) an independent fiduciary who is also a CERTIFIED FINANCIAL PLANNER® professional is a good place to look.
If you’re approaching retirement and wondering how to:
- Minimize taxes on your IRA withdrawals
- Create consistent income that lasts
- Protect your legacy and stay in control
- Avoid permanent mistakes with Social Security or Medicare
…the odds are excellent I can help. If YOU would like some help, tell me your priorities, then schedule an introductory call!
(End of shameless self-promotion). Thanks.
Jim
