Posted on December 21, 2015

Financial Mistakes Retirees Can’t Afford to Make


Many retirees forget the value of diversification, according to Lucas Casarez, a wealth plan assistant with Keystone Financial Services, in Loveland, Colorado. “Whether it be a hot stock or hot sector, these types of things can cause havoc to a portfolio.” When individuals become euphoric about recent successes, Casarez says they tend to over-allocate, and when that investment is no longer hot, they’ll be in trouble. “Lack of diversification may also arise if an individual has over 10% of the investable assets tied up in their employer’s stock.” He says this happens when a retiree has spent a long time with an employer and doesn’t want to let go of that employer’s stocks.

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