17 Retirement Mistakes to Avoid at All Costs

(That You Are Probably Still Making)

Here are some of the biggest retirement mistakes that people are making, according to financial experts.

What is most fascinating is that the majority of them have nothing to do with finances, which should be an eye-opener for anyone planning for or nearing retirement.

While there are absolutely reasons to take a 401k loan, a huge mistake I’ve seen time and time again is people taking repeated loans against their 401k, essentially treating their retirement account like a credit card.

Treating Your 401(k) Like a Credit Card

Maybe you will stay healthy, but having a backup plan for if things go south can help prevent unnecessary pain and stress.

Not Planning for Health Complications

If you are not contributing enough to your 401(k) to receive the match, you are just giving up free money.

Passing Up Free Money in the Form of an Employer Match

People don't consider that their daily routine will be disrupted and they may feel untethered without a structured schedule, social interaction with coworkers, and the pride and sense of accomplishment that comes from contributing through work.

Thinking Retirement Planning is Just for Your Finances

It might seem like a reasonable idea to take out a 401(k) loan to pay for college, but parents frequently lose out on the larger gains their money would have in the stock market versus the small percentage of interest they are “paying themselves” to borrow.

Using Retirement Money to Pay for Your Kids' College

This is known as asset location which is the mix between taxable accounts (individual/joint), pre-tax accounts (IRAs, work retirement plans), and Roth accounts (Roth IRAs, Roth 401k).

Not Understanding the Different Types of Retirement Accounts

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