Not Knowing When to Retire
A lot of us can be caught up in pushing forward when we don’t necessarily have to. This can either happen out of need or want- if you love your job too much to call it quits, nobody’s blaming you!
But too many Americans are misinformed when it comes to when to retire. You might think the only downfall is a perceived waste of time, that you could have spent those years or months worry and work free. But time, though precious, is not the only thing on the line.
If you retire too late, there are retirement plan fees to worry about- more on that later. If you retire too early and find yourself in an emergency, withdrawing from your 401k could come with serious downfalls. More specifically, a 10% penalty fee if you’re under 59 and a half.
You’ll also likely be stuck in consumer culture. Going out and vacationing will harm you financially before you’re used to your new lifestyle unless you’re exceptionally good at holding back and living on a tight budget.
