No one in this day and age wants to die penniless and lonely. That’s probably the plight best left to poets of the Victorian era which was more than a century ago.
That’s why retirement planning has been so important lately. However, the economy, has made it quite difficult for people to shore up their numbers. On top of that, one can make some big mistakes in trying to go about putting up a retirement fund.
CNN Money identifies 6 of the biggest retirement mistakes that one can commit.
Cashing out early. Workers who shift jobs usually cash out their 401(k) instead of rolling it into an IRA.
Not opting back for 401(k) matching. A lot of employers dropped their 401(k) matching due to the economy but many are now reinstating their programs. Many people, however, are not exploiting the chance for free money.
Not outlining goals. You must know how much money you need and what age you’d want to retire.
Not factoring health care. Age comes with failing health. Studies say that you might need as much as $250,000 just for health care. Long-term insurance can, however, cover that.
Not tweaking investments. Investments aren’t magic beans that would simply sprout a huge lot of cash. You have to do a bit of gardening as well. You might need to diversify and reallocate to make sure that your portfolio’s safe and growing.
Not saving now. The best way to be able to save a lot of dough by the time you retire is by saving now.
