You contribute to an IRA and 401(k) to help build the financial resources you’ll need to enjoy a comfortable retirement. But, despite these funds being set aside for retirement, many investors use them before they retire. More than half of Americans tap into their retirement savings early, according to a survey from Magnify Money, a website focusing on financial topics. How can you avoid this problem?
It’s obviously important to leave your retirement savings untouched as much as possible until retirement. You could spend two or three decades as a retiree, so you’ll need a lot of financial resources. Of course, it’s understandable why some people touch their retirement accounts early. According to the Magnify Money survey, about 23 percent did so to pay off debts, 17 percent to make down payments on a home, 11 percent to pay for college, and the rest for other reasons.