You traveled before retirement
One of the perks of retirement is that you have the newfound freedom to spend your time doing things that bring you joy and relaxation. Many retirees choose to spend their time traveling and seeing the world, visiting their children or taking up new and relaxing hobbies.
If the traveling and vacationing part has already been taken care of during your working years, you might have nothing left for your retirement, money-wise. If you’ve already spent your money on splurges and exotic holidays, you’ve probably jeopardized your chances of living a comfortable retirement.
You tapped into your 401(k)
If you’re tempted to tap into your IRA, 401(k) or another qualified retirement plan, you’re not the only one. According to a recent study, one in three 401(k) investors made early withdrawals from their retirement accounts before reaching reach age 59 ½. More than half of younger workers, meaning millennials, have already taken out money from their 401(k).
The sad part is that any early withdrawal from your 401(k) early or cashing it out altogether will cost you more than you’ve ever envisioned. Not only you’ll have to pay a 10 percent withdrawal penalty and taxes on the money, but you’ll also miss out on the long-term benefit of compound interest.
The lesson here: Try to stay away from your retirement savings until you reach your retirement age and leave the work field.
