2 Cardinal Sins Threaten Your Nest Egg

Better Investing

What's Hot


The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

This Free Software Brings Old Laptops Back to LifeMore

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Report: Walmart to Begin Selling CarsCars

Is Your TV Tracking You? Here’s How to Tell — and Prevent ItAround The House

Trump Scraps FHA Rate Cut — What Does It Mean for You?Borrow

Where to Sell Your Stuff for Top DollarAround The House

11 Staging Tips to Help You Get Top Dollar When Selling Your HomeAround The House

8 Tuition-Free U.S. CollegesCollege

10 Overlooked Expenses That Ruin Your BudgetFamily

4 Car Insurers That Might Raise Rates Even When the Accident Wasn’t Your FaultCars

How to Invest If Trump Kills the ‘Fiduciary Rule’Grow

20 Simple Hacks to Make Your Stuff Last LongerAround The House

12 Surprising Ways to Wreck Your Credit ScoreBorrow

Investors are making two big mistakes that threaten to destroy their hopes of a comfortable retirement.

Retirement could be rougher for many people than they expect, judging by investing trends.

Investors are making two critical mistakes these days, according to the latest annual Schroders Global Investor Study, released Wednesday. As a result, these investors could find themselves short-changed in retirement.

Gavin Ralston, Schroders’ head of thought leadership, says of the findings:

“The survey showed that getting back the money invested and getting a return higher than inflation are what is most important to investors. However, investors’ short-term outlook and unrealistically high return expectations raise concerns that investors could be left disappointed.”

Schroders is an international asset management firm focused on long-term approaches to investing.

For its latest study, it polled 20,000 investors across 28 countries.

Unrealistic expectations

Worldwide, investors expect to earn 9.1 percent — a “significantly inflated” rate of return, Schroders says. In the Americas, investors expect 10.4 percent.

However, the study notes that stock returns worldwide are projected to be more modest over the next 12 months, and that “with many countries’ interest rates at historic lows, plenty of investors look set to be disappointed.”

Short-term thinking

Worldwide, investors expect to hold on to investments for 3.2 years on average.

Only 18 percent of investors hold investments for at least five years, which Schroders — like Money Talks News founder Stacy Johnson — considers the minimum.

As he explains investing in “Ask Stacy: Do I Need a Financial Adviser, or Can I Manage My Money Myself?“:

Step one: Decide how much he can put into long-term savings. Long-term means money he definitely, positively won’t need for at least five years.

What’s your take on these findings? Share your thoughts below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: Ask Stacy: Should I Save More for Retirement or Pay Down My Mortgage?

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,878 more deals!