Here are 6 retirement blunders that successful American millionaires tend to avoid — how many are you guilty of heading into 2025?

1. Investing too conservatively during retirement

Retirees are often warned to aim toward more stable investments and lower their exposure to the stock market. That’s good advice, but only to a point.

See, savvy investors preparing for retirement know better than to dump their stocks entirely. Doing so means limiting their portfolios' growth.

A better bet is to maintain an age-appropriate mix of safer assets, like bonds, coupled with stocks and ETFs (exchange-traded funds) that have the potential to lead to stronger gains. Within the realm of stocks, though, it’s a good idea to look at income-producing assets like dividend stocks and REITs (real estate investment trusts), which can also serve as a hedge against market volatility.

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2. Forgetting about healthcare costs

Fidelity puts the average cost of healthcare in retirement at $165,000 for a 65-year-old today. The reality is that your healthcare costs will hinge heavily on how well you take care of yourself, but also, factors outside of your control. But it’s important to allocate funds for healthcare expenses so you’re not left scrambling in any way.

One thing millionaires often do right in the context of retirement planning is bring dedicated funds for healthcare into the mix with a health savings account. These accounts offer the benefit of tax-free withdrawals for medical expenses, which can help wealthier retirees limit their IRS bills.

Wealthy Americans also know to plan for long-term care. On a national level, the median cost of a semi-private nursing home room costs $104,000 a year, according to Genworth. Buying long-term care insurance ahead of retirement can help alleviate some of that burden. And locking in premiums in your 50s, as opposed to waiting until your 60s, could result in more affordable coverage.

3. Spending too much on housing

It's natural to want to spend retirement in a comfortable home with plenty of amenities. But hanging onto a larger property in retirement could create problems, even if that home is paid off.

Redfin reports that in the past five years, property taxes have risen nearly 30% on a national level. Consider downsizing if you no longer need as much space as you once did. It could allow you to reduce a number of housing costs, including insurance and maintenance.

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4. Sinking too much money into a car

Cars are one of those assets that lose value over time instead of gaining value. Millionaires know better than to waste money on fancy cars with expensive price tags, and you may want to limit what you spend on a car, too.

Remember, the more expensive your vehicle is, the more it will likely cost to insure and maintain. And you may also be a more-likely target for theft if you have the nicest car on the block.

5. Funding grown children's lifestyles

It's one thing to support your children logistically and emotionally once they've grown up. It's another thing, however, to offer financial support that might get in the way of your retirement plans.

Savings.com finds that 47% of people with grown children provide some amount of financial support. On average, that support totals almost $1,400 per month among those surveyed. You may want to take a different approach to avoid shorting your own nest egg.

6. Mismanaging RMDs

If you have retirement funds in a traditional savings plan, you'll be subject to required minimum distributions, or RMDs, beginning at age 73. Failing to take an RMD results in a 25% penalty, so millionaire retirees are aware of how important it is to avoid that fate. (Note that RMD penalties can be reduced to 10% if they're corrected quickly).

But millionaires also know a thing or two about minimizing the tax hit RMDs can result in, and you can do the same by donating your RMD to a qualified charitable organization.

You should also know that there’s no requirement to spend your RMD. You can’t put that money back into a tax-advantaged retirement account, but you can invest it in a taxable brokerage account, open a CD (certificate of deposit) with it, or find another way to use it to generate ongoing returns.