Having a large nest egg doesn\u2019t guarantee a plush retirement. Even the wealthy need careful retirement planning to prime their finances to shine.<\/p>\n
Find Out: What a Wealthy Retiree\u2019s Monthly Budget Looks Like at Age 78<\/a><\/p>\n Explore More: 5 Clever Ways Retirees Are Earning Up To $1K per Month From Home<\/a><\/p>\n GOBankingRates spoke with two financial advisors to find out what wealthy<\/a> clients often get wrong in the retirement planning process<\/a>.<\/p>\n In an investment portfolio, too much of one thing likely isn\u2019t a good thing.<\/p>\n \u201cThis often comes in the form of \u2018hometown bias,\u2019 where U.S. investors typically allocate around 80% of their equity portfolio to the U.S. market, even though it constitutes closer to 50% of the total global market,\u201d said Kevin C. Feig, certified financial planner (CFP), certified financial therapist (CFT), certified public accountant (CPA), personal financial specialist (PFS) and founder of Walk You To Wealth<\/a>. \u201cHistorically, over long periods, these markets often perform in opposite directions \u2014 when one is experiencing a long-term bull market, the other may be lower.\u201d<\/p>\n Diversification is important, as it helps increase long-term returns and reduce volatility<\/a>, offering a smoother ride with a better outcome, he said.<\/p>\n Read More: Here\u2019s How Much You Need To Retire With a $100K Lifestyle<\/a><\/p>\n There\u2019s no shortage of financial news online and in the media \u2014 and most of it is detrimental to your health, Feig said.<\/p>\n \u201cFor example, listening to \u2018financial experts\u2019 who are paid to entertain, not to educate, pontificate on the next recession might lead you to panic and sell your investments\u201d he said.<\/p>\n In this case, it\u2019s not uncommon to inadvertently ignore taxes and fees, he said.<\/p>\n Wealthy retirees<\/a> often assume they need to withdraw a set amount of money each month, but this isn\u2019t the case in early retirement, said John Boyd, CFP, founder and lead wealth advisor at MDRN Wealth<\/a>.<\/p>\n \u201cSpending is phased often higher before Social Security begins and lower later,\u201d he said. \u201cWhen clients lock into a flat withdrawal strategy, especially for higher net worth clients, it leads to pretty significant underspending.\u201d<\/p>\n Retirement income is flexible, not fixed, creating the need for potential changes along the way, he said.<\/p>\n