6 Investing Myths That Could Ruin Your Retirement

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Retirement should be a fun and relaxing reward for all the work you put in during your career. But it will be anything but fun and relaxing if you’re constantly stressing over money.

Building up a sufficient nest egg requires a combination of hard work, regular contributions and smart investment decisions. To achieve the latter, you need to avoid common mistakes and myths.

Here are six investing myths that could ruin your retirement, according to experts.

Myth 1: It’s Too Early To Save for Retirement

This is a common myth among younger adults — thinking you have plenty of time to save for retirement and can put your money toward other things.

But it’s one of the “biggest mistakes” you can make, according to Nancy Gates, lead educator and financial coach at Boldin, a financial planning platform that can help you strategize a retirement plan.

“The earlier you start, the more time your money has to grow through compounding,” she told GOBankingRates. “Even small, regular contributions can add up significantly over decades. Starting now and increasing contributions later is far more effective than trying to catch up down the road.”

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Myth 2: Investing Is Too Complicated and Risky

Yes, investing involves risk — especially when you put your money into complex assets you don’t really understand. But as Gates noted, doing nothing can be riskier when you factor in how inflation can eat into your nest egg.

“Even simple, consistent strategies, like contributing to a target-date fund or a low-cost index fund, can steadily grow your retirement savings,” she said.

Myth 3: You Can Minimize Retirement Savings and Work Longer

This sounds good in theory — saving less than you should and simply working longer to make up the difference. But it also assumes you’ll have the ability to work longer. That’s no sure thing, according to an article by Anthea Tjuanakis Cox, head of financial planning at Morgan Stanley.

“Life can be unpredictable, and it’s hard to know now what your circumstances will be when the time to retire comes around,” Cox wrote. “For example, you may need to retire earlier than you expected due to illness or burnout. You could decide at some point in your career to step away to care for loved ones, which could reduce the amount you had planned to save for retirement.”

Myth 4: You Can Successfully Time the Market

This is one of the oldest and biggest myths on Wall Street — buying low and selling high — yet it continues to resonate with investors.

“Rather than trying to predict short-term moves, successful investors focus on time in the market, not timing the market,” Gates said. “This disciplined, long-term approach — combined with regular contributions and periodic rebalancing — is far more reliable for building retirement wealth.”

Myth 5: Your 401(k) Is the Only Retirement Plan You Need

It’s important to have a 401(k) or similar retirement savings plan, but it should be part of an overall retirement strategy rather than the sole focus.

“Decisions around taxes, home equity, insurance, withdrawal strategy, Social Security timing, and even the assumptions you make about your future can have an equal — or sometimes bigger — impact on your long-term financial well-being than your investment returns,” Gates said. “Building and maintaining a holistic retirement plan that combines all of your financial levers with your life goals is critical to your long-term peace of mind.”

Myth 6: Higher Account Balances Are the Goal

Too many people “fixate on the number” in their retirement accounts and assume that “more” automatically means “better,” according to Gates.

“But savings and investments are a means to an end — not the end itself,” she said. “What truly matters is how effectively your money supports your life. A retirement plan isn’t about chasing the biggest balance possible; it’s about building the right mix of income, flexibility, and confidence so you can live the life you want, both now and in the future.”

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This article originally appeared on GOBankingRates.com: 6 Investing Myths That Could Ruin Your Retirement