Eight Common Mistakes That Can Jeopardize Your Retirement

By December 15, 2023No Comments

According to Charles Schwab, retirement planning is the number one source of financial stress for the majority of Americans.[1] Given the potential for retirement to span 20 or more years, it is extremely important to avoid costly mistakes today which could have detrimental costs tomorrow. This article outlines eight common mistakes people make which can have detrimental impacts on retirement.

  1. Delaying or Neglecting Savings Albert Einstein remarked that compound interest is “the eighth wonder of the world.” Capitalize on the power of compound interest by initiating investment savings early and, even better, consistently. Every dollar saved now has the potential to grow significantly by the time you retire. Remember, compound interest works in your favor, so the longer your money remains in your retirement account, the more beneficial it will be in the future. Consider having your payroll provider automatically invest a percentage of your paycheck each pay period into a 401(k) or IRA; attempt to make sure you are deferring at least enough to take full advantage of employer-matching contributions and, whenever possible, make the maximum allowable annual contributions to retirement accounts.

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