Retirement funding is one of the most important financial goals to undertake. Do it right and your golden years will be filled with independence freedom and joy.

The 6 mistakes to avoid are:

1. Not having a retirement plan

When planning for retirement shoot for the basics – food, clothing, and shelter. This means you begin planning as early as possible, shoring up all the resources at your disposal. The traditional instruments of investment are the real estate and stock market. Real estate is stable as it mostly appreciates over time.

Try the 5-3-5-15 Plan. The formula stands for 5 three-bedroom houses within a 5-mile radius of your abode and holding them for 15 years before you retire. Now to answer the question, why buy three-bedroom homes? They are easy to sell at the highest price. They are also in demand for rent this means you earn $1500 per month by today's rates.

Five such properties bring in $7500 or $90,000 annually. Why within a 5-mile radius? So that you can manage them easily. Why hold them for 15 years? So that you earn the rent at the current market price and put the rental increase over expenses towards the principal on their mortgages. This way they will be yours in 15 years thereafter the rent plus equity will fill your pockets.

Now when you have the houses free of mortgage and rents flowing in you don't have to worry about putting food on the table and clothes on your back.

2. Not saving for healthcare

Indeed, you have been health-conscious and exercised all your life. Eaten well and been in the prime of your health. Yet it is prudent to prepare for any eventualities. Most people assume that their senior citizen's medical insurance will pay for all their health issues. But it is not so, as you will still pay your premiums which are significantly higher for people over 65 years.

You may have to pay for the gaps in the insurance besides prescription drugs, dental premiums, and items like hearing aids, etc. Statistics showed that a 65 years-plus couple required $260,000 in 2016 for healthcare expenses as opposed to $245,000 in 2015. This means an increase of $15000 over the year. Considering this simple projection, you can start planning for retirement.

3. Being fooled by the no income tax

States like Florida have no income tax thus attracts lots of retirees. But they make up for the gap in the taxes through high sales and property taxes. So, use the online cost-of-living calculator before you move to the sunny state.

4. Retiring too soon

Don't hang up those boots because you are 65. Besides keeping busy, keeps you healthy this, in turn, keeps your medical bills in check. A gainfully engaged mind and regular workout such a walk to work are the key to high morale and a healthy retirement fund.

5. Take the retirement fund lightly

Financial advisors help determine how much you need to save for retirement and devise a plan. True, they may be complicated to understand but sit down with the advisor to understand the plan. This helps you make informed decisions about your situation and avoid nasty surprises. If you are the DIY kinds do your research well about the options, financial instruments, laws, and taxes.

6. Keep all your eggs in one basket

Neither place all your options in high-risk, high-gains assets nor stagnant them in bank accounts (or stuff your mattress). Diversify your portfolio of investment into annuities, mutual funds, onshore and offshore investments.

Lastly keep a balanced approach, follow your instincts and do not splurge indefinitely. Be pragmatic with your finances and do not take in lame ducks. Of course, give to charity but do not take on responsibilities that are not yours. Be clear-headed and practical and your retirement should be safe and pleasant.