borrowing money from the [retirement] fund
Dallas, TX (PRWEB) September 19, 2015
Debt Consolidation USA discussed in a recently published article some of the most common sins people commit when it comes to their retirement fund. The article titled “5 Sins You Are Committing Against Your Retirement Fund” points out these frequent mistakes consumers make that puts their retirement money in peril.
The article starts off by highlighting the fact that retirement funds are not a question of “if" but of “when." Retirement is inevitable because it is hinged on the simple fact that people get old. And the older they get, the harder it is for them to work and earn the money they need to pay for their expenses.
That is why saving for retirement should be paramount to any consumer’s financial goals. But even as they prioritise it, they commit mistakes along the way that can put that fund in jeopardy. This is why the article helps identify these problems to help consumers avoid them. One of the most common mistakes is borrowing money from the fund.
The retirement fund is meant for consumers who are too old to work and get a steady pay. But there are some people who choose to borrow from their retirement fund early on and loose a lot more than they might have anticipated. One of the reasons is that there is a penalty for withdrawing money from a retirement fund or 401(k) before 60 years old.
But probably the most important aspect of taking money out early on is that it loses the potential compound interest earnings over the years. This is a little hard to compute and especially difficult to earn back. There are also some consumers who forego an employer matching program.
To read the full article, click this link: https://www.debtconsolidationusa.com/personal-finance/5-sins-you-are-committing-against-your-retirement-fund.html