Some of us may think it but we aren't perfect, nobody is. Mistakes are part of our every day lives. Some mistakes don't seem to have very big consequences while others seem to have huge consequences. While it is important for us to learn from our mistakes it is also important for us to be able to learn from others mistakes. If we don't have to why should we make the same mistakes as our parents, siblings, friends and anyone else? I don't believe we should have to. We want to make sure that you don't make mistakes that many others make with their retirement. That is why we want to help you out with your retirement. We want to help you avoid some common mistakes with retirement accounts. If you don't avoid these mistakes the consequences can be bad enough to wipe out a lot of your potential earnings from retirement account.
Here are some of the most common mistakes made with retirement accounts:
Not Saving As Much As You Can
This is the most common mistake out there. Many of us find excuses as to why we can't save for our retirements. The truth of the matter is, in our 20s we more than likely have more disposable income because we have less debts and things we have to buy just to survive. It isn't until our we are quite deep into our careers and making a lot more when we have disposable income comparable if not more than when we did in our 20s. The thing is, the earlier we start saving and the more we save the biggest impact it can have on our retirement because it has years and years to make interest. Are You Too Old To Start Saving For Retirement?
Don't Count On Your Employer
Pensions and great retirement benefits are slowly becoming the thing of the past. With that being said, there are so many people that lean on their employers too much. Don't keep waiting for that perfect job with the perfect retirement benefits and a pension to start saving for retirement. Make a decision today to start planning for your retirement and then get saving.
It's VERY Hard To Beat The Market
It can be very tempting to invest in stocks you feel are great and doing it yourself or maybe you The truth of the matter is that while most investment professionals tout being able to make you fat money it might actually not be worth paying them extra money for investing your money using some new improved algorithm for choosing the best stocks or for them touting having some of the best industry professionals who can see where the market is going and can pick the best stocks. It isn't that easy. The best bet is to choose a fund that mimics the market. Why is this so? Because it is very hard to consistently beat the market. Once you have that index fund set up another great option is to diversify your portfolio. Invest in something other than the market. Real estate investing with your retirement account is something that is very wise. Learn how to invest in real estate with your IRA or 401k.
A Few Other Things To Be Aware Of
While these are some of the most common mistakes that can really hurt your retirement they are not all of them. There are almost no reasons for cashing out your retirement account. Not just because you are taking money out of your account that could make some serious compounded interest but because by doing so it can force you to pay big tax fees. You should also make sure you are doing business with the best. Fees and other issues can cause your retirement account to really suffer. Make sure you know what is normal to be charged and it is smart to shop around. Even a change in fees by 1% to 2% can mean thousands of dollars lost.
You may be one of those who have already made some of these mistakes but there are plenty of others who have made them as well. The idea is to learn from your mistakes. If you haven't made them, please learn from others and do your retirement a favor staying clear of these common mistakes.
If you would like to get the most out of your retirement by diversifying your investments into things like gold or real estate then contact us and we can help.
Author: Nick Barker