3 Retirement Mistakes That Cost Families Thousands

After more than 50 years of combined experience helping families design retirement strategies, we’ve noticed a pattern:

There are three mistakes we see all the time — and they can quietly cost retirees hundreds of thousands of dollars over time.

The good news? Every one of them is avoidable.

Mistake #1: Relying Too Heavily on Tax-Deferred Accounts

Many successful families save diligently in 401(k)s and IRAs… but when it’s time to take that money out, the tax bill can be overwhelming.

We see this all the time: people delay tax planning, thinking they’ll “deal with it later.” But when RMDs kick in at age 73, it’s often too late to reduce the tax impact.

The result? Higher taxes, less control, and fewer choices for your family.

✨Quick Fix: Start planning years before RMDs begin. Strategies like gradual Roth conversions or shifting income sources can help minimize lifetime taxes and keep more wealth in your family.

Mistake #2: Ignoring Liquidity

We’ve met families worth millions on paper… but when they needed cash, they had none available without triggering big tax bills or selling investments at the wrong time.

Liquidity isn’t just for emergencies — it’s for opportunities, too. Having accessible funds gives you flexibility to invest, give, travel, or help family without derailing your plan.

✨Quick Fix: Build a liquidity bucket within your retirement strategy so you always have options — without paying unnecessary taxes.

Mistake #3: Overlooking Tax-Efficient Legacy Planning

Retirement planning often focuses on how to spend your wealth, but just as important is how you pass it on. Without a plan, heirs can face unnecessary taxes, distribution timelines, probate delays, and overwhelming stress.

There are ways to leave tax-free inheritances to your loved ones — including tools like Roth conversions, cash value life insurance, and proper beneficiary planning. These strategies ensure more of your wealth goes to the people and causes you care about — and less to the IRS.

✨Quick Fix: Coordinate your retirement strategy with your estate plan. Taking action now helps protect your legacy, minimize taxes, and give your heirs financial flexibility.

The Bottom Line

Retirement isn’t just about saving money. It’s about knowing when, how, and from where to take it — so you can protect your lifestyle, reduce taxes, and leave a lasting legacy.

These mistakes are common, but they’re completely avoidable with the right strategy.

Want to see how these three issues could impact your retirement?

Let’s talk.

A quick 30-minute conversation can help you understand your options and put you in control of your financial future.