In a few short weeks, the books will close on 2015 and along with them, the chance to make some last-minute decisions about retirement funds.
“People get busy and miss out on these opportunities,” says Keith Klein, owner of Turning Pointe Wealth Management in Phoenix.
U.S. News spoke to Klein and other financial planners who say these are the seven biggest retirement mistakes people make at the end of each year.
Mistake No. 1: Failing to make planning a priority.
“When we come to the end of the year, a lot of people set resolutions,” says Andrew Rafal, president and founder of Bayntree Wealth Advisors in Scottsdale, Arizona. “There’s no better time for setting goals for retirement.”
Beyond setting goals, people should also look back at their fund performance for the previous year. Christine Baim, regional sales executive at Merrill Edge in Phoenix, says both workers and retirees should ask questions about their investments: “Am I allocated properly? Should I do anything to be more diversified?”
For those who aren’t sure about the answers, a financial professional can evaluate your retirement funds and make recommendations.
Mistake No. 2: Overspending during the holidays.
While it may not seem like holiday shopping and retirement are related, finance experts say they can be intertwined.
“I see a lot of people overspend during the holidays,” says Cory Schmelzer, founder of San Diego Wealth Management. “It can eat into your budget so you’re not putting money away for retirement.”
Don’t make the mistake of blowing your holiday budget or, even worse, taking out a 401(k) loan to pay for year-end spending. “As the year comes to an end, it’s important to stay financially disciplined,” Baim says.
Mistake No. 3: Avoiding conversations with your family.
Having a money conversation over Christmas dinner can be a recipe for indigestion, but Rafal says the holidays are a prime time to go over retirement plans. “A lot of time you’re with family, so this is a time to sit down with children,” he says.
That’s especially true if your children are far-flung, and you are rarely in the same place together. Rather than have a serious discussion during the holiday celebration, ask to meet with children or other family members at a separate time, like for breakfast the next day.
While there is no need to lay out the minutia of your finances and retirements plans, it’s a good idea to touch base and let children know where they can find important paperwork in case of an emergency. If you’re thinking of buying a second home to be near children or contemplating another big decision that could affect your family, a casual meal together or coffee outing can be a good time to float these ideas past your loved ones.