Here are 4 unforced errors Americans often commit that can wreck their retirement — which are you guilty of?

Christy Bieber

Sat, Jul 5, 2025, 1:15 PM 7 min read

You only get one life, and accordingly you only get one shot at preparing for a comfortable, rewarding retirement.

Every step leading up to the end of your working life is important, but the closer you get to retirement the more critical your decisions are — and the more costly are your mistakes.

Ufortunately, some retirees end up making unforced errors.

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If you want your golden years to be golden indeed, avoid these mistakes that haunt many older Americans.

Where you put your money during your golden years can have a big impact on your financial health.

Close to half of all Vanguard 401(k) investors aged 55 and up actively managing their money had more than 70% of their portfolio in stocks, The Wall Street Journal reported in 2023. For those aged 85 and up, one-fifth with taxable Vanguard brokerage accounts had almost all their money in the market, as did nearly a quarter of investors between ages 75 and 84.

The Journal also cited similarly troubling Fidelity data, which showed close to 40% of investors between the ages of 65 and 69 holding at least two-thirds of their portfolio in stocks.

While it's good to have some money in the market, having too much can be asking for trouble. If you're heavily invested in stocks and find yourself in need of cash or are taking regular withdrawals to comply with [required minimum distribution rules](https://moneywise.com/retirement/required-minimum-distributions, you may find yourself forced to take money out at a bad time.

This could lead to big losses on your investments when you're unable to wait for a market recovery after a crash. Being forced to sell low could deplete your savings quickly.

To avoid this issue, make sure your money is allocated appropriately. A common formula is to subtract your age from 110 to calculate the percentage of assets that belong in equities. You can also talk with a financial adviser about the asset allocation that works best for you given your account balance, age and future goals.

The important thing is to avoid just sticking with the status quo and to ensure you aren't taking on too much risk out of habit or lack of knowledge about where your funds belong.