<p>We always hear advice that you need to put your retirement money into investments to keep it growing. However, not all people are successful in doing this because most people really don’t have enough knowledge about investing.<br />
The key to success in investing is to buy low and sell high. But, investments are not without risks. Since there are never any guarantees when you invest your retirement money, avoiding the following common investment mistakes will reduce the risk of losing your money:</p>
<h2><strong>1. </strong>Putting your money in a hot emerging investment fund</h2>
<p>When you have other expenses such as sending your last child to college; never place all your retirement money in stocks or high risk investment funds because you will have to pay fees and penalties if you need to access your money unexpectedly. A savings fund or a cash deposit account may be the best place for you to keep your retirement money.</p>
<h2>2. Waiting a long time before investing</h2>
<p>Some people like to test the water before investing, observing stock performance history and researching success stories. There are also people who wait until they have more money to invest. However, while caution is good, waiting too long before investing might just make you lose the opportunity for making a good return on your money. It’s not really how much you invest that matters, but when and where you invest. Even starting with a small sum of money can make you a millionaire after some time.</p>
<h2>3. Early retirement withdrawals</h2>
<p>Cashing out your retirement money early is another investing mistake. Early withdrawals of your retirement money will mean you have to pay taxes on the money that you take. Early withdrawals can actually result in paying as much as 40% of your withdrawal in taxes. If possible, make sure to avoid early withdrawals and just wait for the right time that you can withdraw money tax-free.</p>
<h2>4. Not getting employer contributions for your retirement money</h2>
<p>Companies offer employer-sponsored retirement plans, but it generally requires you to contribute a required amount of money into the retirement plan too. However, with the advantage of your employer’s contributions you will make your retirement fund bigger.</p>
<h2>5. Loaning on your retirement accounts</h2>
<p>Early withdrawal may be subject to taxes, but making loans on your retirement savings may also be risky in case you are not able to repay the loan. If you fail to repay the loan, you may be required to pay early withdrawal taxes as well.</p>
<h2>6. Not consulting a financial planner</h2>
<p>If you don’t have any idea about how to put your retirement money into investments, it is best if you consult a financial planner to help you manage your investment portfolio and help you have a good mix of investments.<br />
<strong>Frequently asked Questions:</strong></p>
<h2>What do I need to know about stocks and funds before I invest?</h2>
<p>As discussed earlier, you need a financial planner if you do not know anything about stocks, but you also need to know common things like:</p>
<ul>
<li>The type of fund</li>
<li>The costs of the fund</li>
<li>The portfolio of holdings</li>
<li>The minimum required investment</li>
<li>Information about the performance of the fund or stock</li>
</ul>
<p>If you have further questions about retirement investments and mistakes on investments, please leave a comment or question.<br />
This is a guest post, written by freelance writer and blogger, Amarendra. He also writes for www.speedyloan.com which offers full information on loans.</p>

Top 6 Retirement Investing Mistakes
