Not Having a Retirement Plan
We don’t just mean having a general idea of when you’ll retire and what your lifestyle will be like. We mean really crunching the numbers and deciding on a retirement plan that’s suitable for you.
401k plans are workplace retirement accounts that handle your pre-tax paychecks, meaning that you’ll only be paying taxes on what you gain minus what you invest. If you’re an educator, a non-profit worker or a government employee, check out the 403(b) and 457(b) plans!
Individual Retirement Accounts (IRAs) are another option you could go for. These are investment accounts that a lot of Americans take once they’ve maxed out their 401(k) plans.
Needless to say, there’s more out there to choose from, so don’t limit yourself to just these two. Start looking into your options at the earliest and make the best out of them.