Avoiding Retirement Killers
There are all sorts of ways to sabotage a retirement. Not saving enough is certainly at the top of the list. But the Motley Fool posted several others on 5/26. Among them: Cashing in your 401(k) plan when switching jobs (an astounding 45% of job switchers do so) and not knowing how much to save (only 42% of workers have done a retirement needs calculation).
Matt’s View:
Instead of cashing in a 401(k) when you leave a job, triggering income taxes and a 10% penalty for those under 59 and a half, roll the money into another retirement account such as an IRA. As for not knowing how much to save, lots of free online calculators are available. Among the better ones are those from by T. Rowe Price, which offers a fairly sophisticated Retirement Income Calculator and a simplified Retirement Planning Worksheet .
This article filed in: Retirement , Saving
Managing Money by The Book
- "To keep me from becoming conceited because of these surpassingly great revelations, there was given me a thorn in my flesh, a messenger of Satan, to torment me. Three times I pleaded with the Lord to take it away from me. But he said to me, 'My grace is sufficient for you, for my power is made perfect in weakness.'" - 2 Corinthians 12:7-9
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