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Boomer execs: What they're doing wrong

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Investment advisors at MullinTBG have identified five mistakes executive pre-retirees tend to make. The number one mistake listed by the firm is trying to invest without a professional’s guidance. As some companies eliminate their defined-benefit plans, boomer investors “should turn to online financial planning tools and/or professional financial advisors to help them assess their risk tolerance, recommend asset allocations, and establish short- and long-term goals.”

Attempting to time the market is another mistake boomer executives make when investing. Boomers who haven’t retired yet should stay focused on long-term investments, and keep their short-term investments online to handle market fluctuations.

Some boomers don’t consider the effects taxes will have on big distributions. “Differences in tax rates and tax brackets must be examined as well as tactics for minimizing impacts to the overall investment portfolio,” according to MullinTBG.

Disregarding annuities entirely and underestimating medical expenses not covered by Medicare are also mistakes made by boomers preparing for retirement. Despite annuities’ bad rap in the past, the firm recommends boomers look into diversifying their portfolios with financial vehicles that provide a steady stream of retirement income. Underestimating their medical needs, or ignoring inflation or long-term care can jeopardize the longevity of a boomer’s portfolio.


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