We’ve heard the story before. As the credit crunch tightens its grip, you’re finding it much more difficult to pay for those bills and meet your basic needs. You’re desperate to find a way out of the mess without having to take a second job or sell an organ on the black market – so it comes as no surprise that your 401(k) retirement fund and savings are looking pretty tempting right now. You figure that you can put off retirement planning for a couple of years, just until the economy straightens out; what’s the harm in that?
No matter what you’ve heard, we’re here to tell you to leave that 401(k) retirement fund alone! We’ve got four smart reasons why you should leave your savings and investments for when it’s actually time to retire:
You’ll Lose Out On Free Money. Nothing in life is free, right? Not when it comes to your retirement. If your employer makes matching contributions to your 401(k) retirement fund, then you’ll lose out on a significant amount of money by halting contributions, even for just a couple of years. Time is truly the most critical factor for a comfortable retirement; if you miss out on a couple of years of investment opportunities, you risk losing thousands of dollars.
You’ll Miss Out On Incredible Growth Potential. Investment advisors everywhere are telling fearful clients that they’ll be kicking themselves if they pull out of the market now. Why is that? It’s a simple history lesson: the markets follow a cyclical effect, and will inevitably straighten out again. If you pull out of the market now, you’ll miss the opportunity to gain a whole lot of income when the economy improves – so take a deep breath, calm your nerves and just ride out the storm.
You’ll Be Penalized. It’s no secret that touching your 401(k) retirement fund before your retirement age will result in severe taxes and penalties. If financial hardship is causing you to turn to your retirement savings for support, can you really afford to fork over a large portion of your hard-earned money to the government?
Didn’t think so.
Your Retirement Is Your Number One Priority. No matter what you think you need to pay off with your retirement savings – be it credit card debt or your child’s tuition bill – it all takes a backseat to your retirement plans. Student loans can see your child through and credit card debt can be tackled through smart budget planning; don’t jeopardize you and your family’s future by dipping into your savings and investments before your retirement.
For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401K experts!
Authored by Kenneth Himmler, Sr.