12 Common Retirement Mistakes You Should Avoid

Part of planning for a secure future is knowing what retirement mistakes to avoid that could potentially cost you money. Some retirement planning mistakes are obvious; others you may not even know you’re making.

Being aware of the main pitfalls, or addressing any hurdles now, can help you get closer to your retirement goals, whether that’s traveling around the world or starting a local business.

Knowing what not to do in retirement planning is just as important as knowing what you should do when working toward financial security. Avoiding mistakes when creating your retirement plan matters because of how those mistakes could affect you financially over the long term.

Saving Too Late

Time is a vital factor because the longer you wait to begin saving for retirement, the less time you have to benefit from the power of compounding interest. Even a delay of just a few years could cost you thousands or even hundreds of thousands of dollars in growth.

Missing Out on Your 401k Match

The biggest 401k mistake you can make is not contributing to your workplace plan if you have one. But after that, the second most costly mistake is not taking advantage of 401(k) employer matching, if your company offers it.

Bad Investing Strategies

Following bad investment strategies can cause you to fall short of your goals, or worse, cost you money. Some of the worst investment strategies include following trends without understanding what’s driving them, or buying high and selling low out of panic.

Bad Investing Strategies

Following bad investment strategies can cause you to fall short of your goals, or worse, cost you money. Some of the worst investment strategies include following trends without understanding what’s driving them, or buying high and selling low out of panic.

Using Retirement Funds Too Early

Your 401k or IRA are designed to hold money you won’t need until you retire. Take money from either one before age 59 ½ and you could face a tax penalty.

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