8. Keep a portion of savings invested in growth
Playing it safe is a natural inclination at this stage in life. You want to protect your hard-earned savings, but if your savings don’t at least keep up with inflation you’ll lose spending power.
For example, it takes about $165 to buy goods and services today that you could have bought with $100 in 1995, according to this Bureau of Labor Statistics’ inflation calculator.
The solution? Keep a good portion of your retirement savings invested in the stock market. Because retirement is a stage of life that can last 20 or 30 years, there’s time to recover if some of your investments lose value.