10 Critical Retirement Investment Mistakes To Avoid

Common retirement investment mistakes to avoid Retired person feeling sad & confused after noticing major investment mistake.

(8) Avoiding Rollover Of IRA & 401(k)

It is one of the biggest & expensive retirement investment mistakes to avoid. This mistakes usually occurs when switching from one job to another. When working in a company, employees save money for retirement.

This is done either in a company-sponsored 401(k) or an Individual Retirement Account (IRA). Both plans involve setting aside a percentage of income in a tax-deferred account.

According to a study, 70% of workers in their 20’s after switching their job prefer to cash out their 401 (k)s instead of roll over.

Once you have saved your money in a tax-deferred account never take it out until before you are 59 ½ years old otherwise you have to pay a 10% penalty.

You just need to roll over your account into an IRA instead of cash out the money. This will help you to prevent lose of valuable interest as well as preventing destruction of the compounding process.

Sometimes, you can also leave the money in your old plan or transfer it to the old age plan offered at your new job.

[Read Also: 10 Wonderful Reasons To Support An Early Retirement]

(9) Underestimating Additional Health Care Costs

It is one of the popular retirement planning mistakes to avoid. Employers are gradually eliminating retiree health coverage provided to their employees. Similarly, Medicare is also not covering certain medical services such as routine eye exams, eyeglass, dental care, & hearing aids.

Medicare will only cover up to 100 days of nursing home care. However, additional long term care including tests & procedures will require you to pay for it out-of-pocket.

Image Source: Shutterstock

Recommended Posts

More From GetUpWise

About Editing Staff
At GetUpWise, we are a team of professional writers from different areas of subjects. We are conducting thorough research on each & every topic from highly reputed sources before writing any piece of article. Once research is done, we try our best efforts to provide informative piece of articles in an easy to understand manner. It is something that is extremely essential to meet our goal while reaching & offcourse building a strong online community. We do update our articles from time to time in order to provide the most latest information quickly. Thus, our articles can be used as a "way to gain smartness".

Leave a comment

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get Instant Access To GetUpWise Posts

Subscribe Us

Please do verify your email address by clicking a link sent to your email.

More in Retirement
Best retirement investment options for senior citizen.
10 Best Investment Options For A Stronger Retirement

Retirement is usually accompanied with aging which in turn causes inability to work & earn money. But the rising cost...