Misconceptions about retirement planning and preparation abound according to Jill Cornfield, writer for Planadviser, starting with target date funds (TDFs). Specifically, some participants believe that the account balance in a TDF will never go down, that a TDF guarantees income in retirement, and that TDFs guarantee lifetime income. All three misconceptions are untrue. Beyond TDFs, check out these 5 misconceptions:
1. ‘I’ll never be able to retire, anyway.’ So… why worry?
2. ‘I can’t afford to increase my contribution.’ Just do it… 1% at a time.
3. 'I don't need to worry about retirement now.' “Time discounting—when people discount something as not important because it is so far in the future—is a widespread misconception….”
4. ‘I’m responsible?!?’ “No one is responsible for our financial security but us,”
5. ‘Oh, the plan has costs?’
Read the details at: http://www.planadviser.com/NewsArticle.aspx?id=10737424404&p=1