Deadly sin of retirement planning: Wrath
"You can take this job and shove it," is a common refrain among the work-weary, particularly those who have clocked in for many years. But don't let anger cloud your judgment in leaving a job. Often, irrational decisions are made in the heat of anger. Leaving a job without sufficient planning could wreck retirement savings.
"You may be living off that savings if your job search takes longer than expected, and voluntarily leaving employment may disqualify you for receiving unemployment benefits," says Petersen.
In addition, paying for COBRA insurance is generally more expensive than an employer group plan insurance premium, which is often paid by an employer.
Randy Warren, chief investment officer of Warren Financial in Exton, Pa., agrees, adding if you have to leave, it's best to leave amicably. You'll need a referral.
"Burning that bridge is surely not a wise approach, especially when your retirement savings are on the line," he says.
Terry Dunne, vice president of the Rollover Solutions Group at Millennium Trust Co. in Oak Brook, Ill., sums it up: "The most noted outcome of anger is cost."