investing

The 7 deadly sins of retirement planning

Retirement » The 7 Deadly Sins Of Retirement Planning

Deadly sin of retirement planning: Wrath
Deadly sin of retirement planning: Wrath © iofoto/Shutterstock.com

"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."

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

Can cash-out refi help 401(k)?

Dear Dr. Don, I just refinanced a $65,000 10-year mortgage at 6% with a refi at 2.6% over 10 years with $14,000 cash out. Closing costs were $2,660. I am interested in putting $10,000 in my 401(k) tax-deferred account at... Read more

advertisement

Blog

Sheyna Steiner

Last week a bunch of 401(k) investors freaked

Goosed by stock market losses last week, some 401(k) investors sold out of stocks and bought fixed-income investments, HR consultant Aon Hewitt reported.  ... Read more

Partner Center
advertisement

Connect with us