{"id":252948,"date":"2025-05-23T01:36:07","date_gmt":"2025-05-23T01:36:07","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/11-ways-retirees-damage-their-retirement-success\/"},"modified":"2025-05-23T01:36:07","modified_gmt":"2025-05-23T01:36:07","slug":"11-ways-retirees-damage-their-retirement-success","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=252948","title":{"rendered":"11 Ways Retirees Damage Their Retirement Success"},"content":{"rendered":"


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Phil wrote in last week and asked,<\/p>\n

Jesse \u2013 I\u2019d love to understand the common mistakes you see retirees (and near-retirees) make. You\u2019ve written about Charlie Munger and his \u201cinvert, always invert\u201d philosophy. So I figure \u2013 if you tell us what the common mistakes are, and we try to avoid those mistakes (invert!), then we\u2019ll be in a better place for it! <\/em><\/p>\n

Phil \u2013 you genius. <\/p>\n

I love this idea, through and through. So here are my 11 common ways retirees hurt their retirement chances. <\/p>\n

Learn them, invert them, and then do the right<\/em> thing! <\/p>\n

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Ignoring or Underestimating Inflation<\/h2>\n

Your $100,000-per-year lifestyle won\u2019t cost $100,000 forever. Pretending inflation doesn\u2019t exist is a shortcut to eating cat food in your 80s.<\/p>\n

Luckily, this is well-worn ground. We have the answers. <\/p>\n

We know exactly how to account for inflation in retirement and\/or FIRE planning<\/a>. <\/p>\n

Too Much Risk & Sequence of Returns<\/h2>\n

This one hasn\u2019t burned too many retirees over the past 15 years. But it won\u2019t disappear forever. <\/p>\n

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\"burnt<\/figure>\n<\/div>\n

In short,\u00a0the sequence of returns risk<\/a>\u00a0occurs when a portfolio value falls too far, too quickly, in your early retirement years.<\/span> It starts a \u201cnegative snowball\u201d in your portfolio that can often be fatal (at least, fatal to the odds of your successful retirement). There are generally three main culprits: <\/p>\n