3 Most Dangerous Myths of Retirement Planning

Rules of thumb may be a good place to start, but they shouldn't dictate all your retirement plans.

Recently I was talking to a good friend of mine, who is in his early fifties, about his retirement planning. I asked him how prepared he was. Here is what he said:

"I am all covered. I will retire at 65. I expect my retirement expenses to be 70% of my pre-retirement expenses. I will have saved up $1 million by the time I retire. I will invest this money in a portfolio of stocks and bonds with my stock allocation equaling 100 minus my age. Once I retire, I will start drawing 4% from my portfolio each year, which will comfortably cover my retirement needs."

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Vid Ponnapalli, CFP™, MS, EA
Founder & President, Unique Financial Advisors
Vid Ponnapalli is the founder and president of Unique Financial Advisors. He provides customized financial planning and investment management services for Generation X professionals. Ponnapalli is a Certified Financial Planner™ with an M.S. in Personal Financial Planning. He is an Enrolled Agent (EA), licensed to prepare tax returns and represent taxpayers before the Internal Revenue Service. Ponnapalli is a current active member of the National Association of Personal Financial Advisors (NAPFA), the Financial Planning Association (FPA), XYPN (a financial planners network focused on Generation X and Generation Y clients) and National Association of Enrolled Agents (NAEA).