1. Failing to plan or even get started
Not making the choice to save is still a choice. We would be choosing a long term standard of living below what we are capable of. This choice also leads to working full time pretty much forever, just make a plan and start saving.
2. Taking contributions early
I've never understood this one, but I see it too much. People will pay a huge tax penalty and spend their 401k contributions when they switch jobs. First they need to start saving all over again, second they've lost all the valuable compounding time on that money.
3. Paying high fees
Before opening any type of retirement or savings account, research the fees and understand them. Shop around and find a company you trust with your future.
4. Not educating ourselves on a continual basis
This seems like common sense, but many just refuse to learn. If we want to succeed in anything, educating yourselves is a must. Retirement planning is complex and laws continue to change over time. We can't read one book and be prepared to retire. Make the commitment to a daily or weekly block of time to study about personal finance. Finwiz.
No comments:
Post a Comment