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Check the
list below -- are you making any of these foolish mistakes?
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1. I don't
need to pay attention to my 401(k) as long as I contribute something, since
someone else is managing it.
As the
debacles at several high profile companies show, you can't leave your 401(k) on
automatic pilot. You need to look at your own financial/life goals and risk
tolerance, and develop a savings and retirement plan that will help you meet
those goals without keeping you up at night.
2. My
spouse or kids will provide for my long term care needs.
According
to recent research conducted by the GE Center for Financial Learning, 59 percent
of women over the age of 65 won't have a spouse to take care of them due to
divorce, widowhood or increased longevity. Taking into account your long term
care needs is an essential part of your retirement planning.
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3. I can't
afford to save enough money to buy a house.
Additional
GE Center for Financial Learning research showed 38 percent of consumers admit
they would rather spend money on personal indulgences than save money. Keep
track of where your money goes and plunk the excess into savings for that
special purpose -- college savings, a home and retirement.
4. I can
carry debt as long as I make the minimum payment each month.
If you
love being in debt, this plan is for you. To better manage credit card debt, pay
the new charges and the finance fees each month, plus $25 to $150 extra.
5. I don't
have to start saving for retirement until I'm at least 40.
If you
save diligently from age 20 to 40, you may be able to retire early. Or at least
take time off from work (and saving) and enjoy yourself.
6. My
future spouse is on top of things with the bills and taxes so I don't need to
bother with educating myself.
Your
spouse-to-be may not be as financially savvy as you think, so the more you know,
the better a mate you'll be, and the better you'll be able to take care of
yourself and your family.
Web sites,
such as the GE Center
for Financial Learning can help you and your future family let go of these
financial misconceptions through a variety of tools and educational resources.
But however you do it, make a point to begin educating yourself about good
financial habits -- it's never too early or too late to let go of foolish habits
and get started on the road to financial fitness!
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of ARA Content
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Copyright Ruby Glen 2001
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