• Using a 10.2% rate of return
  • Market Definition of Diversity
  • Assuming you have to invest aggressively to make money last
  • Assuming Estate Planning is about Taxes
  • Avoiding Annuities – The value of a personal pension
  • Not Planning for Medical Custodial Needs
  • Relying upon Pensions – Federal / State / Corporate
  • Assuming inflation is 3 – 5%, trusting the CPI
  • Buying Term that lasts just until the kids are out of the home
  • Not owning Real Estate outright by age 60
  • Assuming retirement is at age 65 or later
  • Forgetting to plan for financial dependents
  • Not understanding the power of grandchildren
  • Not planning for age 100
  • Assuming you will be in a lower tax bracket at retirement
  • Avoiding Roth Conversions
  • Thinking bonds are conservative
  • Not Respecting the raw power of market downturns
  • Assuming the worst is over for the debt / real estate crisis
  • Forgetting still living parents
  • Assuming your Business will sell
  • Ignoring team work
  • Allowing clients to avoid annual planning
  • Assuming you can retire, especially type A’s
  • Remember frugality
  • Trusting historical market trends – the speed of communication and information
  • Not planning for out of pocket medical costs
  • Not keeping up to date – New blended products
  • Baby Boomer Optimism
  • Assuming cost of living goes down in retirement
  • Forgetting lawsuits, asset protection in a litigious society
  • Paying for college before locking up retirement savings
  • Using price to make financial product purchasing decisions
  • Trusting in the stability of the US government
  • Avoiding bankruptcy to remove debt
  • Planning for men and women in the same manner
  • Using contemporaries for your professionals – Go younger
  • The power of the voting class and entitlements
  • Assuming the rich do not need to plan for custodial medical costs

Authored by: Jeanne Brutman

Jeanne Brutman is a fully independent Financial Planner in the New York area who advises people on how to grow their personal net worth through Easy, Step by Step Education and Decisions that build their wealth and security over the short and long term. Jeanne can be emailed at jeanne@jeannebrutman.com or visit her at her website www.askjeannebrutman.com for useful tools and tips.

Jeanne's Podcast Link: Setting financial goals (etc.) for the new year.

*All investment advice given by Jeanne Brutman is just opinion. Please consult with your financial professional for a more thorough discussion of what is appropriate for you

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