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5 Simple Retirement Mistakes You've Already Made This Year

Matt Wiley | JAN 3, 2018

The year may have just recently started, but it's never to soon to start making critical mistakes that could cost you dearly in retirement.

Here are five mistakes you're already making this year.

1. You're neglecting interest rates.

The national average interest rate for a savings account is just 0.06%, according to the Federal Deposit Insurance Corporation (FDIC).

But right now you can easily find savings rates as high as 2.45%. Moving your money to an account with higher interest is one of the simplest ways to save extra money without really doing anything.

This CIT Bank Savings Builder Account offers 2.45% interest as long as you deposit at least $100/month or maintain a $25,000 balance.

2. You're neglecting your health.

New year, new you. It's time to get active. Of older adults, 80% have at least one chronic disease and 77% have two or more, according to the National Council on Aging. Another sobering statistic: 90% of Americans ages 55 and over are at risk for high blood pressure, a disease preventable through basic lifestyle choices.

You can improve your health with every choice you make. The food you eat, the exercise habits you start (or rekindle) all can help contribute to a happier and healthier retirement. 

3. You're neglecting your company's retirement plan.

The retirement savings option most often overlooked is the most common: your 401(k).

These work-sponsored options are a great way to lower your taxable income and when your employer matches your contributions, it’s doubly worthwhile to take advantage of the account. You can contribute up to $19,000 in 2019, $500 more than last year.

4. You're borrowing against your retirement.

Whether it's to fund a child's college education or to cover the cost of a home repair, once you dip into retirement money it can be difficult to repay it and get your investments back on track. You only get the benefits of compounding interest through time.

5. You're trying to plan for retirement yourself.

Financial advisors can help you effectively plan how best to allocate your savings, where to invest and how to avoid paying unnecessary fees and taxes along the way.

This new tool makes it easy to find the right financial advisor for you. Now you can get matched with up to three local fiduciary investment advisors that have passed a rigorous screening process.

Follow These Steps to Get Matched With the Right Advisor for You

1. Simply enter your ZIP code below.

2. After you enter your ZIP code and answer questions about your financial goals, you can compare up to three top advisors local to you and decide which to work with.

3. Enjoy a better financial future!

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SmartAsset - copyright 2018

SmartAsset - copyright 2018

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