US. Five Retirement Planning Pitfalls (And How To Avoid Them)
As a financial advisor, one of the most commonly asked questions I get is, “What can I do to improve my retirement picture?”
One of the biggest benefits of investing in a 401(k) plan is the ability to grow your assets over time. A 35-year-old who contributes $19,000 annually over a 30-year period can have $1.34 million to retire on at age 65, assuming a 5% annual return. Now that might sound like a difficult amount to put aside each year, but the beauty of long-term compounding can enable smaller amounts invested over periods longer than 30 years to grow to similar or even greater levels.
Sadly, many Americans fail to save enough, or in some cases anything, for retirement. Sure, life brings many immediate responsibilities, from raising a family, to running a business or caring for older parents, but if you don’t make your long-term savings goals a priority, you may wind up looking at retirement with no plan in place.
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