3rd Mistake: Not Taking Advantage of Savings Opportunities Outside of 401(k) Plans
Base solely on their 401(k) savings, the same survey found that boomers would need an additional $142,000 per year to reach $1 million. And remember, this figure might still be too little for an ideal nest egg.
Though the company-sponsored 401(k) might be great and we highly encourage anyone, not just seniors, to take advantage of them, there is only so much they can help.
Sadly, not enough people consider their other options, which is a real shame since there are so many opportunities out there to build up a hefty amount.
What You Should Start Doing Now
For many Americans, their 401(k) plans are the biggest contributors to their retirement savings. Social Security benefits also make up a chunk of your nest egg, but by now you should be aware that those checks will be like a drop in the ocean compared to what you’ll need.
Some households also have their own taxable savings accounts, so that’s also something you must consider. But more than that, if you haven’t already, look into IRAs and Roth IRAs, as both of these options will come in handy exponentially, especially since seniors too have to worry about taxes during retirement.
The bottom line is this: just because your 401(k) might seem more advantageous now, it’s a good idea to diversify your savings just as you would diversify your investment portfolio.
