There are a lot of lists out there telling us what not to do with our money, but the list published in the Consumer Reports February issue was one of the most comprehensive I've seen. Each mistake is identified with an estimated price tag, and the 12 mistakes could cost up to $1 million. Pretty eye-opening when they put it like that.
- Investing too conservatively during retirement: $360,000 to $750,000.
- Retiring before you need to: $237,000 to $309,000.
- Launching a divorce war: $49,000 to $188,000.
- Underinsuring your home: $16,000 to $194,000.
- Overpaying for your mortgage: $27,000.
- Carrying a credit-card balance: $5,000 to $23,000.
- Maintaining an unhealthy lifestyle: $4,600 to $42,000.
- Ignoring Roth accounts: $9,000 to $26,000.
- Cashing out your 401(k) early: $6,000 to $17,000.
- Underfunding your 401(k): $36,000.
- Paying needless fund fees: $4,000.
- Falling for a scam: $100 to you-name-it.
Six more, so just read more
Hogan
O'Neill
Littlewoods
Aw man, you can't get to see the details of the rest of the list without subscribing. Perhaps this is an example of number 12?
1Hahaha they are all true though! Some people loose SO much money and aren't even aware of it.
2Late fees is another big one in my opinion.
3lol Remedios. Very true on all of those.
4wow
5eye opening
So many people cash out their 401(k)'s when they leave a job (10% tax penalty), and don't roll them over to an IRA or the next 401(k) plan at a new job (or just leave them until they are ready to take action). That's a terrible mistake!
And carrying a credit card balance is soooo stupid. Even if you need the money, there are other ways to get it without the crazy rates that cards carry.
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