Avoid these top 5 mistakes we see retirement investors make

May 06 2020

1) Being too reactive when investing

Many people don’t think about their retirement until a few years before. Did you know that only 15% of retirees know how much they make after retirement?

Avoid this by: Engaging an expert early to help you make timely decisions on how to best invest your wealth for retirement. This ensures that you can maintain your lifestyle in your retirement and preserve your wealth for generations to come.


2) Not involving your family in your investment strategy

7 of 10 wealthy families lose their fortune by the second generation. One of the main reasons for this is that most investors refrain from involving their successors in their investment strategy until it is too late.

Avoid this by: Ensuring your family is involved in wealth preservation, understands your goals and follows a similar route. It is recommendable to involve them in your investment decision making process early on.


3) Rely on a narrow investment approach

Just 5% of investors maintain their lifestyle after retirement.

Avoid this by: Diversifying your investments across multiple asset classes, geographies and sectors. Alternative assets like commercial and private real estate are a great option to diversify your portfolio. A well balanced diversified portfolio can provide sustainable returns over the long run as it helps you to mitigate risk. The Family Office can help you tailor your portfolio based on your unique needs and investment goals.


4) Invest in opportunities that you don’t understand

Especially in volatile times like these, it can be appealing to buy into investment opportunities that are available at a significantly lower price. Be careful! Don’t let the low price trick you to invest into assets you don’t fully understand.

Avoid this by: Involving an expert Wealth Manager into your investment decisions. They will create a risk profile based on your financial goals and recommend opportunities that best fit you!


5) Take advantage of the magical power of compounding interest

60% of retirees have not taken any steps to prepare for their retirement. This means that they also do not take advantage of the magic of compounding. You can optimize your retirement nest egg by contributing to it every year and letting your money work for you.

Avoid this by: Partnering with a trusted Wealth Manager who understands you and can support your decision-making, manage administrative tasks, and create a transparent structure for your assets and succession planning.


Disclaimer: The Family Office Co. BSC(c) is a Category 1 Investment Firm regulated by the Central Bank of Bahrain with an authorized and paid up capital of US$10,000,000. The Family Office only offers products and services to ‘accredited investors’ as defined by the Central Bank of Bahrain.

Sources:

https://www.financialexpress.com/money/retirement-planning-how-hnis-are-diversifying-their-investment-portfolio-to-fund-their-retirement/1878334/

https://www.linkedin.com/pulse/wealth-planning-unusual-times-an-kelles-%E5%AE%89%E5%85%8B%E8%95%BE%E6%96%AF/

https://brownwealthmgt.com/tips-for-retirement-income-planning/


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