Your own worst enemy: Are you hurting your retirement savings plan?

You work, you save and you study the market: The fact is, most Americans have to be in charge of their own retirement savings plan.

So, are you acting in your own best self-interest? Or are you your own worst enemy?

Most of us aren’t financial professionals, but the times are the times and we all have to learn fast to manage our retirement savings plan – or find a trusted financial advisor to help!

But it you are just getting started – or you haven’t found a good financial advisor yet – you might be hurting your retirement savings plan without even knowing.

For the most part, people generally understand that you need to start saving early, take advantage of your employer’s matching program if it exists and be aggressive when it comes to financial goals. But many people miss a major factor that can actually hurt them down the road: Taking money out of your retirement savings BEFORE you actually retire.

The fact is, more than half of Americans do this and it can have negative consequences and get you off track for a happy, healthy retirement.

So, why do people do it? There are many reasons. A financial hardship, paying off debt, paying for a big expense like a home, wedding or education or even medical costs.

It’s often a quick and easy way to fund these things, but that doesn’t mean you should. Many people make the mistake of thinking they have time to pay back the money – but, they often do not.

Sadly, taking even a small amount of money out can hurt your retirement savings account’s bottom line – due to fees and taxes.

It can also hurt your compounding interest!

But is there ever a good time to take money from your retirement find? That’s tricky. If you have a financial emergency or even crippling debt, it might be in your best interest. A good financial advisor can help you make this call, if you have considered other options and are desperate.

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If you have other questions about retirement plan loans, email us or call 937.308.0758.