3 Retirement Savings Mistakes That Could Cost You $100,000 or More
I know you. You work hard for your money and you're saving actively for retirement. You want to make sure you're doing the right stuff to maximize your money's effectiveness. Well, the first step to figuring out what to do is to make sure you aren't making any major mistakes. Here are three you'll particularly want to avoid, because they could easily cost you $100,000, or more.
Uncle Sam wants you to save for retirement. If you need proof, look at the tax code -- it's littered with tax breaks designed to help savers. While retirement accounts differ in their precise design, they all share one universal benefit: They provide you with substantial tax breaks if you contribute money to them.
Most retirement accounts -- which include employer-sponsored 401(k)s and individual retirement accounts, or IRAs -- come in one of two flavors: traditional and Roth. The major difference is tax related: Traditional accounts offer you a tax break now and for the entire time your money is in the account, but you're taxed on the income after you withdraw it in retirement. Roth accounts, by contrast, give you no tax break today, but the money can grow and be withdrawn in retirement without any tax penalty ever again. Here's a good, in-depth primer if you want to learn more about them.
Source: Fool.com