Is misinformation or inaction affecting your nest egg?
A writer at The Huffington Post
polled a few prominent advisors about common financial planning mistakes. Their responses
call out some common practices – or lack thereof – that could be holding people back from a comfortable retirement.
Many Americans may be taking a misstep by not taking advantage of the maximum contribution amounts allowed in their retirement accounts each year, said Cathy Curtis, investment advisor and financial planner. The power of compound interest can make a huge difference in the future if investors set aside that extra amount needed to reach the contribution limit, she added.
Personal finance author Bob Lotich said many homeowners don’t realize how big of an impact a paid-off mortgage can make on retirement saving.
“The fact is that many of us are going to fail to build a nest egg as large as we would like, but for those who fall into that category eliminating mortgage debt could provide a much more comfortable retirement. Some retirees may find themselves in a much more comfortable position by taking some of their retirement savings and using it to pay off their mortgage.”
A sentiment echoed by several advisors is that a lot of people’s biggest blunder is not doing anything at all. According to David Ramsey, Host of the David Ramsey Show:
“The biggest mistake people make is they don't plan ahead. Saving for retirement isn't complicated, and it doesn't require complex financial strategies. You just have to be intentional when it comes to saving and planning for the future. It's not your employer's or the government's responsibility to make sure you have money to live on in your old age. It's up to you!”
If you’re at least thinking about how you want to spend your golden years and what it will take to get there, you’re heading in the right direction, according to the experts. There are retirement planning tools
available to help you take your wealth building a step further.