7 Mistakes Guaranteed to Ruin Your Retirement

4. Saving money in the wrong accounts

Another common mistake is putting retirement money in the wrong accounts. A typical savings account isn’t going to cut it.

Instead, put that money in tax-sheltered retirement accounts such as 401(k)s or individual retirement accounts. These accounts come with tax benefits as well as stiff penalties for early withdrawals. Avoiding such early withdrawals is an essential component of ensuring your savings are still there at retirement time.

And by all means, if your employer offers a 401(k) match, put your retirement savings there first. You’d be a fool to pass up that free money. Money Talks News founder Stacy Johnson explains this further in “Ask Stacy: How Much Should I Contribute to My 401(k)?”