It is no secret that successful retirement planning begins early on in life. The younger you start the better off you will be when the time comes to leave the work force and sit back and relax. However, being young and planning for retirement can also leave you room to make many mistakes regarding your retirement. Below are 12 retirement planning mistakes that you must avoid regardless of how old or young you may be. Use this list of mistakes to help you successfully plan for the future.
* Thinking you know how much you will actually need. Many people make the mistake of not saving enough or having enough retirement and quickly find themselves out of money. It’s better to have too much retirement than not enough.
* Investing in a retirement plan without actually saving money yearly on your own. Another common mistake is not having an additional savings in conjunction with your retirement plan. Even if the funds will be used to travel, an extra saving plans will help meet your needs when it comes time to retire.
* Paying off current loans before investing in retirement. Don’t try to get small loans such as college or automobiles paid off. It is better to use that money to invest in your future retirement. Focus on putting as much money as you possibly can into your retirement plan. One the other hand, you should try you best to have your mortgage paid off before retirement comes. This will keep you from having to place a large sum of your money into paying off loans.
* Believing in career permanency. If you start saving at a young age, you can expect your career to change over the years. You may be forced to adjust how much you are saving as you transfer to new jobs.
* Not understanding how your retirement plan works. Be sure that you know exactly how your retirement plan works. Be sure that there aren’t loop holes that you are missing and that you are going to get out of your plan what you are investing in it.
Being unaware of withdrawal fees. How much will you be taxed when you withdraw your money? Be sure that the majority of your money isn’t tied up in withdrawal fees.
* Choosing not to participate in your company’s retirement plant. Another common mistake people make is choosing not to participate in the retirement plan offered by their employer. If your company offers a plan, take advantage of it.
* Borrowing money against your plan. Many people feel that it is okay to borrow against the retirement plan. Borrowing too much will quickly leave you with very little over the years. If you are going to borrow money, borrow it from the bank, not your retirement.
Cashing out your plan during hard times. Try to ride out hard times instead of turning to your retirement for money. You will need the money to live off of when you are older.
* Taking too many risks. When investing in retirement, don’t take too many risks. You don’t want to be left with nothing if the economy is in default when the time comes for your to retire.
* Not getting advice from the professionals. Don’t think you can do it on your own. Get the advice from professionals who specialize in creating lucrative retirement plans for people. They can show you how and when to invest. A financial planner can set you up for retirement and you will have very little worries.
* Investing very little with intentions on investing more in the future. If you can afford it, go ahead and invest as much as you can in the future. After all, the time will come when you have to retire and you want to be prepared. Don’t have the “I’ll worry about it later” attitude when it comes to your future. Secure your future while you are young so that you can live without worries when you are older.
Use the mistakes listed above as a guide to helping you plan for retirement. Avoiding these mistakes will help you be thoroughly prepared when the time comes to retire.
This article is written by 1001 Walking Canes – a home of stylish walking canes and sticks for men and women