Investing in your portfolio and building your retirement fund is always a wise decision. Working with Matthew Dixon, Registered Financial Consultant, allows people of any age to have a strategic investment plan to increase their retirement fund while decreasing their taxes.
Surprisingly, despite the ability to work with a retirement planning expert, many people still use a do-it-yourself retirement plan. Worse yet, many people in Seneca, SC, choose to use online advice rather than seeking the experience and knowledge of a professional. Not having an individualized plan set up by a retirement expert like Matthew Dixon can set back your retirement plans or result in less money to retire on than anticipated.
Not Rolling Over Retirement Accounts
A common mistake is to take out money from a retirement account in a lump sum when leaving an employer and moving to a new employer or a new career or job. The temptation is to take out the lump sum payment to pay off debt, with the mental calculation that the money saved on repaying the debt will somehow become money towards your retirement savings.
Instead, as Matthew Dixon explains, the employee loses 30% in taxes and penalties and rarely ever builds up the lost investment and interest over the rest of their working years.
Investing in One Asset Type
Currently, the most talked-about investments are cryptocurrency, blockchain, and NTFs. While these investments have the potential for significant earnings, they are also highly volatile, are not regulated, and pose an extremely high risk of loss of the asset.
Failing to diversify your portfolio places your retirement at the risk of one asset class in the market. Instead, individuals in Seneca, SC, should plan to diversity and adjust their risk to their age and number of years left earning an income.
