2. Being too ‘safe’ with your savings
Stashing retirement cash in a savings account or money market account sounds safe. And it does avoid the risks of the stock market. But it invites risk from another source: inflation.
If prices soar, your expenses might quickly swamp your savings.
So, as you approach retirement — and even after you’ve actually given up working — at least some of your money should be in the stock market or real estate investments. Otherwise, there is a good chance that cash is losing value.
Check out “9 Tips for Sane and Successful Stock Investing” for more ideas on growing your money.