Even with thorough planning, retirement savings can be decimated by job loss, divorce or death, but just as much damage can be done by subtle mistakes – below are seven that can prevent investors from reaching their goals:

1. Not having a plan – Participating in your retirement plan at work and opening an IRA don’t count. Smart savers determine what they’ll need, define a savings goal and identify a plan to reach it by focusing on asset allocation.
2. Holding concentrated positions – Some investors accumulate a large position in their employer’s stock only to see a big downturn just before retirement. Selling concentrated positions before retirement can help: Set a target for how much you need to sell, identify a date to reach that target, and then regularly sell.
3. Investing too little in stocks – Whether due to the rule of thumb (100 minus your age is your percentage allocation to stock) or just fear, many end up underinvested in equities.
4. Being unrealistic – Don’t overestimate potential return or underestimate spending. Many spend more during “the go-go years” with more travel and activities. As you progress, you may slow down – “the slow-go years,” before reaching “the no-go years.” Honest budgeting accounts for levels of spending throughout retirement.
5. Being too generous – While saying “no” is hard, you don’t want to blow retirement funds by being too generous with your adult children. Think about how much you can contribute toward the down payment on a house, a lavish wedding, or paying for recurring expenses like insurance.
6. Having more house than you need – Do you really need four bedrooms when the kids move out? Many find it’s nice to retire without the expense of a large home. Some plan their retirement to coincide with paying off their mortgage.
7. Underestimating health care – Supplemental policies can be expensive, but it’s important to budget adequate coverage to insure against a costlier risk.

Article provided by Rebecca Ross, Vice President and Financial Advisor at Robert W. Baird & Co., member SIPC. She has 32 years of financial services industry experience, and can be reached at 239-541-9090 or rross@rwbaird.com.