Leave Your 401k Alone (as reported by Andrea Coombes on marketwatch.com)

One of the worst financial mistakes that someone saving for retirement can make is reaching for the cash in their retirement accounts too soon. A study by Fidelty found that 35% of people who left their jobs last year took some or all of the money in their 401k or IRA accounts in order to cover their immediate expenses. Not only does that cost you in the short term, with a penalty for taking out the money too soon plus heavy taxes, but it also hurts your future plans by draining your funds that were supposed to keep you going into retirement. Of course there will be times and situations that this is your only option, but it’s important to explore any other options that exist before endangering your future livelihood. For the full story, click here.

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