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
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