How One Big Mistake Could Cut Your Retirement Investment Accounts in Half

Having a healthy investment account balance is key to a secure retirement since you can’t live on Social Security alone. Building the nest egg you need is going to require making smart moves throughout your career — as well as avoiding major mistakes. 

Unfortunately, according to recent data from Edelman Financial Engines, there’s one big error that could cut your 401(k) account balance in half. Here’s what it is — and how you can avoid it.

Older woman sitting on couch looking at financial paperwork.

Image source: Getty Images.

This is a 401(k) mistake you can’t afford to make

According to Edelman Financial Engines, defaulting on a single 401(k) loan is the mistake that could cut your retirement savings by 50%. 

Edelman’s calculation was based on a hypothetical worker with $100,000 invested by age 45. The worker had 9% annual 401(k) contributions (including employer match) and 7% average annual returns, which would’ve resulted in a nest egg of

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