The road to retirement is filled with potential missteps, but one of the most serious — affecting how you live your golden years if you aren't careful — is being too conservative with your retirement investments. It's the biggest mistake Mellody Hobson, co-CEO and president of Ariel Investments, sees retirees and pre-retirees make all the time.
"People think they are winning by not losing when over time it's not outpacing inflation," Hobson told Kiplinger.com in an exclusive interview. "You need your money for years, and the only way for it to grow is to have equities. People pull back too fast, too soon." Pre-retirees, especially those nearing retirement, are guilty of the same mistake, says Hobson. They see the off-ramp getting closer, and they get conservative too quickly.
