Neglecting the 401(k) rollover
Most of us have changed jobs at least once in our lives. Many have also neglected to roll over their retirement savings to the new employer’s 401(k) plan. For your savings, that means not growing at the best rates. For your retirement, it means not having enough money to fall back on.
To make sure you’re not creating an unnecessary obstacle for your retirement plan, find out if it’s better to leave your money in your former employer’s plan or move it to the new company’s 401(k) plan.
Excluding retirement contributions from your budget
Retirement might seem like a distant dream, but, before you know it, you have to say goodbye to your 9 to 5 job and find ways to spend your retirement days as pleasantly and comfortably as possible. However, in order to do just that, you have to consider your financial needs in retirement and adjust your current budget accordingly.
Thomas suggests creating a budget and sticking to it, without excluding the retirement contributions you need to make in order to achieve your retirement goals. “Most people are spending more time planning their vacations than their retirement,” he says. Don’t be one of them!
