4 401(k) Mistakes That Will Derail Your Retirement
Stashing money away in your 401(k) for years on end, sadly, does not guarantee a fruitful retirement. Just look at the numbers. Fidelity reports that the average 401(k) balance in 2018 was $102,900 . That's just a fraction of what you'd need to live comfortably for decades without a paycheck. To put things in perspective, the AARP calculates that a retiree needs $1.18 million on hand to provide annual income of $40,000 for 30 years.
So why aren't savers building up seven-figure balances in their 401(k) plans? Because 401(k) saving is complicated, for one. Using your employer-sponsored plan effectively goes well beyond contributing regularly and watching the balance grow. You also have to manage tricky topics like company match, vesting, and investment performance. Here are four major 401(k) mistakes that might be pushing back the timeline of your retirement.
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Source Fool.com
