7 myths about retirement investing that do not guarantee good outcomes

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Seven myths about retirement investing that people need to ignore
Investors should watch out for bad advice, as the result could be way too costly, according to this article on Forbes. For example, an expert warns that "the buy, hold and forget" strategy would only work in bull market conditions. "Managing downturns is more important for most individuals, and can only be accomplished through active management. Markets change over time, and your investment portfolio needs to adjust with it in order to properly manage risk and provide adequate returns," says the expert.
Saving $1 million for retirement is possible even if you start at age 50
A study by the American Association of Individual Investors shows that people can still end up with $1 million in retirement savings even if they start building their nest egg at age 50, according to this article on Money. To do this, they can contribute the maximum amount to their 401(k) plan, including their catch-up contribution, or make $18,000 in annual contribution without the catch-up, the report says. They can also have $1 million in savings by the time they retire if they save $1,000 every month, max out their IRA contribution with a catch-up contribution, or contribute the maximum amount of $5,500 to IRA even without the catch-up provision.

Money milestones: This is how your finances should look when your kids go to college
Contrary to what personal finance experts say, many parents are willing to delay retirement to pay for their children's college education, according to this article on MarketWatch. Such a move would put their retirement plan at risk, say the experts. “You’re taking some type of risk, such as having to delay or diminish your own retirement lifestyle,” says a financial adviser.

Powell: Three ways near-retirees can avoid investment mistakes
A study shows that investors who are close to retirement are very likely to make very bad timing decisions, according to this article on USA Today. Sticking to a financial plan, relying less on risk tolerance questionnaires, and including target-date funds in the portfolio are strategies to avoid this trap. “By creating a set-it-and-forget-it investment strategy, the investor can feel as if they don't need to constantly make course corrections that can harm them in the long run,” says an expert.

Retirement: Figuring your Social Security break-even age
A study by the Government Accountability Office says that making a Social Security claiming decision based on the break-even age may not be a good idea, according to this article on Chicago Tribune. That is because such an analysis can be misleading, "in part because people fear the potential loss of benefits if they die early more than they fear outliving their retirement savings," says the report. The impact of cost-of-living adjustments to the benefits and the increase in survivor benefits for the delay could cut short the break-even time frame.

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