4 Ways You Could Sabotage Your Retirement Savings

Source

Saving for retirement should be one of your primary financial goals. After all, almost everyone needs to quit work someday, and Social Security alone isn't enough to support you through your later years. 

Unfortunately, many people inadvertently make mistakes that jeopardize their ability to save up the nest egg they need. Here are four common errors that could leave you with too little to live on in retirement.

Older couple looking at computer.

IMAGE SOURCE: GETTY IMAGES.

1. Missing out on an employer match

If you have a workplace 401(k) that provides an employer match, not claiming the full amount of it is a huge mistake. An employer match is literally free money, and it's the only chance you have to earn a guaranteed 100% return on your investment.

An employer match could end up leaving you with hundreds of thousands of dollars in extra money in retirement if you take full advantage of it every year that you work. So find out from your plan administrator what you need to do to earn the full amount and do everything in your power to contribute enough to get it. 

2. Not taking advantage of tax breaks for retirement

Your employer isn't the only one who will help you save for retirement. The government wants to subsidize your efforts as well. In fact, you have options to get assistance from Uncle Sam regardless of whether you have a job that comes with a retirement plan or not.

That's because there are a number of tax-advantaged retirement accounts you can put money into, including a 401(k) or various types of IRAs.

When you invest in a traditional 401(k) or IRA, you get a tax deduction in the year you make the contribution. If you invest $1,000 in one of these accounts, and you're in the 22% tax bracket, your taxable income goes down by just $780. The government essentially gives you the other $220. While you will eventually be taxed on withdrawals, this subsidy makes it much easier to amass the nest egg you need.

You don't want to miss out on it by not putting as much as you can into accounts that come with generous tax breaks. 

3. Failing to track the fees you're paying

The majority of Americans who invest in 401(k)s don't know what fees they're paying on their account. And the lack of knowledge about investment fees isn't limited to just 401(k)s either. It's far too common for people not to pay attention to management or advisory fees for many different kinds of investments. 

Unfortunately, if you pick investments that have high fees, you're cutting into your returns and won't see your money grow as much because of it. And when you're investing a lot of money over a long period — as you do when investing for retirement — unnecessary fees can cost you tens of thousands of dollars. 

If your 401(k) has a high administrative fee or offers only expensive investments, put enough into it to get the match and then invest elsewhere. And when you buy mutual funds, ETFs, or other investments, always pay attention to the expense ratio so you'll know how much your investment will cost you.

4. Not maintaining the right asset allocation

Finally, far too many people are invested either too aggressively or too conservatively. Both are risky, because the former could lead to an outsized chance of significant losses that are hard to recover from, while the latter could mean your returns are too low to build the nest egg you imagined.

You could also end up with the wrong mix of investments, because you don't take your age and investing timeline into account when deciding how to distribute funds across different assets. Or you could end up with the wrong mix because some of your investments perform much better than others and you don't take action to rebalance your portfolio.

You don't want to lose out on returns you should earn, nor take a chance of getting stuck with big losses because you need to sell investments at an inopportune time. Avoid this by checking your asset allocation every year and making necessary adjustments as you grow older and your risk tolerance changes. 

By being on the lookout for these four common pitfalls, you can maximize the chances your nest egg will be large enough to offer the security you deserve in your retirement years.

Read Next: WARNING: New Fed Policy to Impact 9,500 Stocks

Sponsored

Take a moment right now to review this URGENT video briefing from America's #1 independent stock ratings agency.

Weiss Ratings has just issued its findings on the unintended consequences of a new Federal Reserve policy.

According to the agency's researchers, this policy is forcing investors into a corner. Whether they know it or not.

And… “closing all other avenues of opportunity.”

Most investors are not aware of what this will mean for their investments.

The fallout could be devastating for some and enriching for others.

If you own shares of any U.S. stocks…

It's critical that you find out what is about to happen.

For full details, click here right now.

P.S. No matter who's in the White House. No matter what happens in the economy. This new Fed policy is what will drive the markets for years to come. Find out how it will impact your investments here…

Is Amazon Obligated to Pay You?

Thanks to a U.S. law, you can claim your slice of this jackpot and collect up to $48,000 over the next year.

Enter your email below to find out how.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

#1 Energy Pick

This little-known Silicon Valley company is using AI to do something incredible…
Enter your email address to receive the name and ticker symbol of the #1 tech bargain stock now.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

#1 EV Breakthrough of 2022

Louis Navellier is about to give away the ticker symbol of an overlooked battery company… one set to skyrocket in value as the EV boom gets underway. 
Simply enter your email below to learn the name of this company today…


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

Anyone can invest like “The People’s Shark” with as little as $100

You no longer have to be rich, famous, or powerful to become an angel investor. Starting now, it’s possible for you to get involved in these life-changing deals.
Enter your email address for all the details of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

Is L.A.S.E.R. The Greatest Tech Breakthrough in History?

A $3.5 trillion megatrend… spearheaded by Elon Musk is bringing what could be the most disruptive, revolutionary tech breakthrough the world has ever seen, with one small company sitting at the center.
Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

2,467% Return on Israeli Laser Company

Learn the 3 Steps You Need to Protect Your Retirement and One Stock that Could Soar 2,476% in Nine Months.
Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

One Tweet From Elon Could Blow This Story Wide Open

Last year, anyone who listened to this man about Tesla could’ve made EIGHT TIMES their money. Now he’s revealing how Elon’s NEXT big move will revolutionize ANOTHER massive $23 trillion market.
Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

$25 to Profit from 20,000 IPOs

Days from now — 20,000 ‘IPOs’ could start flooding the market…
Enter your email address to reveal how anyone with $25 can stake their claim.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

"Bio-Chip" Sparks Potential 199,900% Surge by 2025

Sign up below for all the details on this tiny company being considered a once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works