Sat May 03 2025, by Tyler Gardner

3 Mistakes That Can Destroy a $2 Million Retirement Portfolio

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1. Getting Too Conservative Too Quickly

Many retirees panic and shift everything into bonds, CDs, and cash. The problem? Inflation will destroy you. A $2 million portfolio in low-return assets could lose 30 to 40% of its value in just 10 to 15 years. Always consider mixing growth assets into your plan.

2. Taking Out Too Much Too Soon

Mathematically, the most important years to be quasi-frugal are the first few years of retirement because you potentially have the largest asset base you'll ever have. The smartest retirees do not blindly stick to a 4% rule or even a 6% rule. They withdraw based on market performance, spending just 10 minutes a year checking their numbers.

3. Not Factoring in Long-Term Care Costs

This is one of the fastest ways to go from 60 to zero overnight. A private nursing home can cost over $100,000 a year right now. Consider long-term care insurance, hybrid life policies, or setting aside enough money in a stable, liquid account like a money market fund to self-insure against future health risks.

Conclusion

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