Ten Ways to Wreck Your Retirement
March 27, 2009
New NCPA Study Warns Against the Most Disastrous Investment Mistakes
DALLAS, TX (March 27, 2009) - More Americans are in a panic over their retirement planning than at any other time in history because of market uncertainty, and many are making extremely expensive mistakes, according to new study. NCPA Senior Policy Analyst Pamela Villarreal said the study concludes that it doesn't have to be that way.
"We have identified ten of the most common and damaging financial decisions that individual investors are making," added Villarreal. "Out of fear and the best intentions, we are seeing too many people reacting to a bad economic situation and liquidating their own retirement."
The study details ten points; three of which are listed below. To see all ten of the most common financial decisions that are sure to ruin your retirement, click here for the full study: http://www.ncpa.org/pdfs/10_Ways_to_Wreck_Your_Retirement_Study.pdf
- Don't Make Saving a Habit - Young workers may think they have plenty of time to save later, but setting aside a little bit of money on a regular basis throughout one's working years produces a greater nest egg than setting aside a large amount of money later on.
- Leave Matching Funds on the Table - Not taking advantage of an employer's matching contributions to a 401(k) account is like turning down a raise. An employee who turns down an account match of up to 5 percent of his salary is passing up a 5 percent bonus paid with untaxed dollars.
- Borrow Against 401(k) Savings - This is a surefire way to set back one's retirement plan by several thousand dollars through lost compound interest. A $25,000 loan today can cost more than $175,000 in lost interest retirement income over 30 years!
For more information, please link to the study or click here to watch a short video: http://www.ncpa.org/avo/visual/ncpa280.asx.
For an interview with Ms. Villarreal, please contact Leah Gipson at 972-308-6486.