Use a systematic investment strategy. Instead of trying to pick individual stocks or time the market, focus on a disciplined investment strategy based on your long-term goals and risk tolerance. A good example is dollar-cost averaging; you invest a fixed amount regularly, irrespective of the market conditions, which goes a long way in reducing impulsive decisions.

In retirement planning, overconfidence can cause excessive risk-taking or even poor investment choices, given that individuals may believe that they can "time" the market or pick winning stocks.