Is It Possible To Screw Up Retirement Planning

Category: Finance, Financial Planning.

But short of the worst case scenario of an early demise, everyone is going to get old and its far better to do so with a plan then to let it sneak up on you.

Is it possible to screw up retirement planning? This is something you do not want to screw up. Of course it is. So it is good to know the common mistakes people make so you can avoid them. If you speak to senior citizens who did not start planning in advance and got to their senior years with nothing to fall back on and no funds to use so they can step out of the working world and enjoy a more leisurely retirement lifestyle, that is an example of people who screwed up their retirement planning. Probably the biggest mistake that you can make in your retirement planning is to wait to start it until you are pretty close to retirement. Then just let that money continue to accumulate and grow and before you know it you are sitting on top of a pretty substantial nest egg.

If you want to retire at 60 and you do not start getting ready until you are 55, you will not have nearly as well prepared a retirement package as if you had started when you was 25 or 3By starting early, you can set back a small amount each month and put it into an IRA, your employer 401k or some other retirement vehicle. Speaking of sitting on top of a nest egg, the second big mistake people make is not leaving that nest egg alone. Above all, resist this temptation. When that retirement investment fund starts to get big, it is really easy to look at it as a way to get you out of credit card debt trouble or to borrow against for some new plan or possession you want. If you lose that retirement fund due to foolish use of the funds in your middle age years, you are back to square one with nothing to show for your years of hard work developing that retirement nest egg. This is step one but its not a good idea to never go back and review your retirement plan and see if how you are going about getting ready for retirement well in advance. The plan of setting up withholding from your checkbook or a direct deposit to your retirement account of retirement savings allows you to go about your busy life knowing that your retirement planning is underway.

Make it a regular ritual to sit down and review what is going on with your investment funds. Remember, just because your retirement funds are being managed by the company you work for does not mean the money belongs to them. Look at the way your investments have been performing and if you are not getting a good return on those money, make some changes. It is yours so be responsible and manage it. And by taking good care of your retirement before you need it, you are guaranteeing that it will take good care of you when its time to depend on that fund for a happy and prosperous retirement lifestyle. Starting early and staying proactive about your retirement is your best approach to retirement planning and one that will result in a much bigger retirement fund for you to start your golden years with.

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