The Biggest Retirement Planning Mistake of All          

by Steve Vernon, FSA

Most people spend more time planning their next vacation or car purchase than planning for their retirement and rest-of-life. That's a huge mistake! Neglecting to plan for a period of your life that might last 20 years or more -- during which you have to rely mostly on your accumulated financial resources -- could be the biggest mistake you'll ever make.

And while it's an ambitious task to plan for such an extended period of time, it's a necessary one. So it makes sense to spend a significant amount of time and effort to do the job right. Read here to learn more about the steps you should take to make the most of your retirement years.

Please keep reading for this month's selection of helpful blog posts and articles on retirement.

If you're a boomer approaching retirement who's been keeping abreast of retirement planning issues, you're probably already aware of several common retirement planning mistakes that many people make, such as starting Social Security benefits too early, drawing down your retirement savings too rapidly, or panicking and selling your stock investments when the market tanks. If these issues sound familiar to you, pat yourself on the back, because you've been keeping an eye on your retirement money ball.

But planning for a retirement and rest of life that could easily last several decades is an ambitious undertaking, and you'll need to keep your eye on many different balls, not just the money ball. So let's take a look at some common retirement planning mistakes that don't directly involve your money to help you avoid these missteps.

Should You Start Social Security Benefits Early?

I've often written about the financial advantages of delaying your Social Security benefits. One recent post in this vein drew a number of comments and emails from readers who disagreed with my conclusions and outlined their reasons for starting to collect federal retirement income as soon as possible.

Nationwide, half of all Americans start their Social Security benefits at age 62, the earliest age of eligibility, and three-quarters start benefits before the "Full Retirement Age" (age 66). What should you do? My answer: Take into account both the financial arguments regarding Social Security and your lifestyle considerations, given your unique circumstances. If you understand the rationale for delaying the start of benefits but your lifestyle considerations trump these factors, then you've made a conscious choice that I respect. Read here for more details.

One question that CBS MoneyWatch blogger Larry Swedroe is asked most often is what to do about bond investing in an environment of historically low interest rates. Not only are the yields painfully small -- the 10-year bond pays a mere 1.76 percent -- but low rates have led many investors to conclude that rates are sure to rise. In response, many investors stick to short-term bonds, hoping to reduce their losses if rates climb. Here's why that strategy might be a mistake.

CBS MoneyWatch blogger Allan Roth just attended FinCon 12, a financial bloggers conference. Of the 400 attendees, he was one of the oldest. He was not only wowed by the young talent producing independent blogs with millions of followers but was also impressed by the outstanding advice they were giving to readers of all ages.

The event kicked off with the Plutus Awards, which recognize the best financial blogs (aptly named after Plutus, the Greek god of wealth). Read here to learn about some of the winners, whose outstanding sites you may want to visit.

How to Protect Your Parents From Financial Fraud    

Investment fraud and financial abuse targeting older Americans are major problems today, according to a recent survey by the Investor Protection Trust and Investor Protection Institute. Read here for the most common types of financial fraud committed against the elderly, and learn how you can protect your parents - and yourself.