4 Common Pre-Retirement Mistakes
On the eve of retirement, there's a lot going on in your financial life. There are numerous major (and in many cases irrevocable) decisions to make that will affect the rest of your life. And if you make one or more of the following common mistakes, you'll likely regret your decisions for years to come.
Once you hit age 59 1/2, you can withdraw money from your 401(k) or IRA without being hit by an early withdrawal penalty from the IRS. However, that doesn't mean taking money so early is a good idea. Your retirement savings will likely provide the bulk of your income during your retirement. If you start drawing on that money before you ever retire, there's an excellent chance that the remainder won't be enough to last as long as you do.
Instead of taking money from your retirement savings accounts, do the opposite and consider escalating your contributions. Workers age 50 and older can make catch-up contributions, raising the annual contribution limits for both IRA and 401(k) accounts. It's true that any money you put into your retirement savings account right before you retire won't have much time to grow, but every penny you put in at that late date will still help to boost your retirement funds.
Source: Fool.com
